Rupee hits record low of 78.59 against US dollar in early trade

The rupee depreciated 22 paise to a record low of 78.59 against the US dollar in opening trade on Tuesday as persistent foreign funds outflows weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened on a weak note at 78.53 against the American dollar, then lost ground to quote at 78.59 -- its all-time low level, registering a fall of 22 paise from the last close.

On Monday, the rupee declined by 4 paise to close at its life-time low of 78.37 against the US dollar.

"Persistent selling by FIIs in the domestic markets is also putting pressure on the rupee," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

According to Kalantri, further economic sanctions on Russia may drive global energy prices higher and put pressure on emerging market currencies. "We expect the rupee to remain volatile this week and could cross 78.55 levels," Kalantri said.

Global oil benchmark Brent crude futures rose 1.20 per cent to USD 116.47 per barrel.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent lower at 103.92.

On the domestic equity market front, the 30-share Sensex was trading 314.88 points or 0.59 per cent lower at 52,846.40, while the broader NSE Nifty declined 101.75 points or 0.64 per cent to 15,730.30.

Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,278.42 crore, as per stock exchange data.