The rupee had touched its previous record low of 68.8650 per dollar on November 24, 2016.The Indian rupee fell to an all-time low against the U.S.
dollar in early trade on Thursday, tracking Asian peers with weakening macro-economic fundamentals on the domestic front also weighing on the currency.
At the interbank foreign exchange market, the rupee opened at 68.87 a dollar against 68.61 previously and sank to 69.10 in morning deals, falling 49 paise.Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November.
Concerns over supply disruptions in Libya and Canada also pushed prices higher.
Higher crude oil prices and a declining rupee are a double whammy for India, forex dealers said.The Reserve Bank of India's (RBI) battle to contain a falling rupee just got tougher.
The current account deficit is widening and a weak global investment climate coupled with policy paralysis in New Delhi, sticky inflation and slowing growth have increased the aversion of foreign investors to India, pushing the capital account into the red.
Last week's move by rating agency Standard Poor's to cut the country's credit rating outlook to "negative" has complicated matters further for the RBI, which has few options other than intervention and tinkering with rules on export credit to encourage inflows, RBI officials say.The rupee, which strengthened 5.96 per cent against the US dollar last year, has been on a general downtrend since the start of 2018.
It has lost nearly 7 per cent this year so far.
It had touched a historic low of 68.86 in November 24, 2016 and a lifetime closing low of 68.80 in August 28, 2013.
(Inputs from Reuters, PTI)