Rupee has touched historic low against US dollar. (File Photo)
Continuing its downward trend, the rupee hit a record low of 70.32 against dollar on Thursday crashing 43 paise further from its previous value. The rupee had touched 70.10 on August 14. Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
A sharp surge in trade deficit too impacted the rupee. Trade deficit soared to a near five-year high of USD 18 billion, data released by the commerce ministry earlier this week showed.
Furthermore, depreciation of the Turkish lira against the dollar after the US imposed tariffs on steel and aluminium imports also put pressure on the Indian rupee, they added.
Attributing the fall in rupee value against the US dollar to "external factors", Economic Affairs Secretary Subhash Chandra Garg had said that there was nothing to worry about as long as the depreciation was in line with other currencies.
Earlier, taking a cue from muted global markets, the key Indian equity market indices opened lower.
The Sensitive Index (Sensex) of the BSE, which had closed at 37,852 points on Tuesday, opened lower at 37,796.01 points.
Minutes into trading, it was quoting at 37,677.12 points, down by 174.88 points, or 0.46 per cent.
At the National Stock Exchange (NSE), the broader 51-scrip Nifty, was quoting at 11,390.35 points, down by 44.75 points or 0.39 per cent.
The markets remained closed on Wednesday for the Independence Day celebrations.
On Thursday, Asian indices were showing a negative trend. Japan's Nikkei 225 was quoting in red, down by 0.35 per cent while Hang Seng was down by 0.80 per cent, South Korea's Kospi was down 0.99 per cent. China's Shanghai Composite index was trading in red, down by 0.91 per cent.
Overnight, Nasdaq closed in red, down by 1.24 per cent while FTSE 100 was also down by 1.52 per cent at the closing on Wednesday.
(With inputs from agencies)