Rupee falls to a new record low of 58.64 against dollar

The rupee fell to a new record low of 58.64 versus the US Dollar . On Monday, the rupee sank 110 paise at a life-time low of 58.15 against the dollar hurt by outflows of the American currency and weak macro-economic indicators.

Dealers said the rupee continues to face challenges from India’s rising current account deficit (CAD) and overseas economic data and policy decisions.

Intra-day range for the rupee is expected at between 58.25-58.80 levels.

The interbank call money rates opened flat at 7.30 per cent from their previous close.

The 8.15 per cent government security (G-Sec), which matures in 2022, opened flat at Rs 104.25. Yields remained at 7.49 per cent.

The rupee is being battered following the dollar's rise against emerging market currencies. The dollar has strengthened on account of expectations that the US Federal Reserve would start scaling down its massive quantitative easing programme as the economy recovers.

The reason behind the rupee's recent weakness is the heavy selling of debt by foreign investors. FIIs have sold debt worth 15,402 crore in the Indian market since May 22. But inflows into equities have so far been positive.