Mumbai:- The rupee on Friday fell by 74 paise to an all-time low of 94.70 against the US dollar, driven by rising oil prices and a strengthening dollar due to the ongoing conflict in West Asia.
According to forex traders, the sharp decline in the domestic stock market and the withdrawal of money by foreign institutional investors have put further pressure on the local unit.
The rupee opened at 94.18 in the interbank foreign exchange market and gradually declined to cross the 94.50 mark. At the same time, the rupee had closed at a record low of 93.96 against the US dollar by falling by 20 paise on Wednesday, while the stock market was closed on Thursday due to the Ram Navami holiday.
"The rupee has broken the 94.50 level with continued buying by oil companies as exporters are hoarding their earnings while importers are buying dollars at higher prices to pay their bills," said Anil Kumar Bhansali, Treasury Head and Executive Director, Finrex Treasury Advisors LLP.
Global oil benchmark Brent crude rose sharply overnight and then fell marginally by 0.53 per cent to $107.4 per barrel in trade.
On the other hand, the country's stock market also witnessed a big decline today. Till the time of filing the news, the BSE Sensex was trading at 74,082.69, down by about 1,190.76 points, and the NSE Nifty fell 352 points to 22,954.20. According to exchange data, foreign institutional investors sold shares worth Rs 1,805.37 crore on Wednesday.