The rupee was trading at 81.55 against the US dollar in the interbank foreign exchange market, up from its previous trading session's close of 80.99.
Digital Desk: The Indian rupee fell to a new record low of 81.55 against the US dollar on Monday after a sharp uptick in the dollar index, according to dealers.
The rupee was trading at 81.55 against the US dollar in the interbank foreign exchange market, up from its previous trading session's close of 80.99.
"Rupee drops to new record lows as the dollar gains ground globally. Hawkish Fed expectations, political unrest in China, and the sell-off in the pound following the tax cut announcement are also affecting the mood of the market as a whole. This week, the RBI will announce its policy statement, which is likely to have an impact on the rupee's precipitous decline versus the US dollar "said Gaurang Somaiya, a forex and gold analyst with Motilal Oswal Financial Services (NS:MOFS).
The yield on US Treasury securities with a two-year maturity was 4.2%, the highest level since October 12, 2007.
The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, increased to 114.58 before falling to 113.513.
The price of a barrel of Brent crude oil was $85.08.
According to reports, the Reserve Bank of India (RBI) is selling dollars after the rupee touched an all-time low for the third consecutive session.
India's foreign exchange reserves have been progressively falling over the past few months as a result of the RBI's market intervention to defend the depreciating rupee and for the country's trade settlement.
This depletion is one more factor for the rupee's depreciation.
It may be mentioned that later in the week, the RBI is set to raise rates too.
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