Rupee falls 8 paise to hit new record low of 85.35 against US dollar in early trade

Rupee hits record low against dollar due to strong greenback, easing crude oil prices, and positive domestic cues.

The rupee slid for the fourth straight session, depreciating 8 paise to hit a new all-time low of 85.35 against the US dollar in early trade on Friday due to strengthening American currency and relentless outflow of foreign capital.

According to analysts, the local unit was weighed down by the dollar's strength amid the greenback's increased demand by importers for month-end and year-end payment obligations. However, easing crude oil prices globally and positive cues from domestic equity markets capped the fall in the Indian unit.

At the interbank foreign exchange, the rupee opened weak at 85.31 and slipped further to hit its lifetime low of 85.35 against the greenback, registering a loss of 8 paise from its previous closing level.

The rupee plunged 12 paise to its record low closing mark of 85.27 against the dollar on Thursday, after declining 13 paise in the previous two sessions.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.04 per cent at 107.93 amid soaring US Treasury yields with 10-year bond hovering around 4.50 per cent.

Brent crude, the global oil benchmark, rose 0.07 per cent to USD 73.31 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex was trading higher by 207.16 points, or 0.26 per cent at 78,679.64 points. The Nifty was up 88.50 points, or 0.37 per cent, at 23,838.70 points.