The rupee fell by 76paise to close at 82.61 against the US dollar on Tuesday due to heavy selling pressure on domestic equities and rising crude prices in the overseas markets.
The investors were concerned about continued foreign capital outflows ahead of the RBI's policy announcement on Wednesday, as well as concerns about continued foreign capital outflows, according to forex dealers.
The local unit opened weak at 81.94 and fell to 82.61, a loss of 76 paise on the interbank foreign exchange market. During the day, the local unit saw an intraday high of 81.94 and a low of 82.63.
The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.05 per cent to 105.24.
The global oil benchmark Brent crude futures rose 0.64 per cent to USD 83.22 per barrel.
The 30 per cent of the BSE Sensex fell 208.24 points or 0.33 per cent to 62,626 on the domestic equity market front. The NSE Nifty 58.30 declined by 0.31 per cent to 18,642, while the NSE Nifty 58.30 declined by points or 0.31 per cent. Foreign Institutional Investors FIIs sold shares worth Rs 1,139 in the capital markets on Monday. According to exchange data, there is 07 crore.
The World Bank has revised its GDP growth forecast for India to 6.9 per cent for 2022 -- 23 and said that the economy was showing higher resilience to global shocks.
In its India Development Update, the World Bank said that the revision was due to higher resilience of the Indian economy to global shocks and better than expected second quarter numbers.
The rate-setting panel of the Reserve Bank started brainstorming for the next round of monetary policy on Monday with expectations of a moderate interest rate hike of 25 -- 35 basis points as inflation started to show signs of easing and economic growth tapering.
The RBI has hiked key benchmark lending rate by 50 basis points bps thrice since June, above an off-cycle 40 bps increase in the repo in May.
The bi-monthly monetary policy will be announced on December 7 at the end of the three-day Monetary Policy Committee MPC meeting, said by RBI Governor Shaktikanta Das.