Rupee hits fresh low record of Rs.74. 27 against US dollars on Tuesday. The rupee erased its all morning gains and fell 21 paise to hit the new record low. The rupee hit record low in afternoon trade after Brent crude breached the $84 a barrel-mark again and the American currency strengthened overseas.
The traders said, the unabated foreign fund outflows also weighed on rupee as foreign investors continued to liquidate their investments in India. The domestic unit opened at Rs. 73.93 and advanced to Rs.73.88 on fresh selling by the exporters in the Forex market. However, it again slipped and reached lifetime low of Rs.74.27 against US dollar.
Besides, the strong demand for the American currency from importers, concerns rising fiscal deficit and capital outflows weighed on the domestic currency.
During the mid-session, the BSE benchmark Sensex dropped by 87.79 points to 34,386.59.