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The rupee on Wednesday declined by 16 paise to close at its fresh lifetime low of 77.60 against the US dollar amid unabated foreign fund outflows and a stronger greenback in overseas markets.
At the interbank foreign exchange market, the rupee opened lower at 77.57 and later hit the day's low of 77.61 as the dollar rebounded in global markets following hawkish comments from US Federal Reserve chief Jerome Powell.
Powell’s hawkish comment
Crude oil prices also surged over 1 per cent, which weighed on the rupee.
The local unit finally ended at its all-time low of 77.60, showing a loss of 16 paise over its previous close of 77.44.
"The dollar index took support near 103.50 and the capital market witnessed profit booking from higher levels, sending rupee into weakness," said Jateen Trivedi, VP Research Analyst at LKP Securities.
The US Fed chief asserted that the central bank would increase interest rates as high as needed to contain a spike in inflation which threatens the foundation of the economy.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.3 per cent higher at 103.59.
Global oil benchmark Brent crude futures rose 1 per cent to ₹113 per barrel.
Foreign institutional investors remained net sellers in the capital market on Tuesday as they offloaded shares worth ₹2,192.44 crore, as per stock exchange data.
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