Rupee hits record low of 79.11 against US dollar in early trade

Mumbai, Jul 1 (PTI) The rupee depreciated 5 paise to a record low of 79.11 against the US dollar in opening trade on Friday as persistent foreign funds outflows weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened on a weak note at 78.99 against the American dollar, then lost ground to quote at 79.11 - its all-time low level, registering a fall of 5 paise from the last close.

On Thursday, the rupee fell 3 paise to close at a fresh lifetime low of 79.06 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.21 per cent higher at 104.90.

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee opened low as there are no signs of fund flows or strength in Asian currencies, Brent crude oil prices coming down or a pause in interest rate hikes.

"All these are a nemesis for the rupee and RBI is the only one supporting it and keeping it in a small range. Suddenly one day we may see the next spike," Bhansali said.

Global oil benchmark Brent crude futures rose 0.05 per cent to USD 109.09 per barrel.

On the domestic equity market front, the 30-share Sensex was trading 411.74 points or 0.78 per cent lower at 52,607.20, while the broader NSE Nifty declined 123.10 points or 0.78 per cent to 15,657.15.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,138.05 crore, as per stock exchange data.