Mumbai, March 27 The rupee fell by 33 paise to a fresh all-time low of 94.24 against the US dollar in early trading on Friday, weighed down by high oil prices and a stronger dollar, amid no breakthrough in the West Asia conflict.
Heavy selling in domestic equity markets and sustained outflows by foreign investors put further pressure on the local currency, according to forex traders.
At the interbank foreign exchange market, the local unit opened at 94.18 and fell further to 94.29 against the dollar, down 33 paise from its previous close.
The rupee also slumped 20 paise to close at a record low of 93.96 against the US dollar on Wednesday. Stock, forex, commodity, and bullion markets remained closed on Thursday due to Ram Navami.
"With Brent oil prices again exceeding USD 105.75 per barrel, and the dollar index rising towards 100, the rupee opened weak," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
The dollar index, which measures the strength of the dollar against a basket of six currencies, was trading at 99.67, up 0.08 per cent.
Brent crude, the global benchmark for oil, rose overnight before easing towards the end, down 0.78 per cent at USD 107.1 per barrel in futures trade.
"Brent crude rose to USD 107.50 per barrel but fell after US President Donald Trump postponed strikes on Iranian power plants by 10 days," Bhansali added.
On the domestic equity market front, the Sensex fell by 926.92 points to 74,346.53 in morning trade, while Nifty was down 280.95 points to 23,025.50.
Foreign institutional investors sold equities worth Rs 1,805.37 crore on a net basis on Wednesday, according to exchange data.