The Indian rupee today breached its previous all-time low and was quoting at 50.65/67 against the greenback in late morning deals on continued capital outflows and higher month-end dollar demand, besides a strong US dollar in the overseas market.
According to forex dealers stronger dollar abroad gave an opportunity to the foreign banks to buy American currency in local market to sell it in offshore non-deliverable forward contracts for an immediate profits.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 50.69 a dollar from previous close of 50.46/47 and remained stable in late morning deals.
Previously the rupeee had touched an intra-day low of 50.60 on December 2, 2008. In the last four trading sessions the Indian currency has tumbled by 85 paise or 1.71 per cent.
Sustained selling by Foreign Institutional Investors in equity markets also weighed on the rupee. They pulled out nearly $1.6 billion in the current calendar year so far.
Updated at 0915 hrs
The Indian currency today opened at a record low of 50.67 per dollar, down 21 paise this morning.
The rupee yesterday fell by 53 paise against the US dollar, weakening for the fourth consecutive day, to close at a record low of Rs 50.48.
Continued capital outflows, the effect of arbitrage and month-end demand from importers kept the currency below 50, indicating persistent tendency towards weakness.