The rupee fell 18 paise to close at a record low of 79.03 provisional against the US dollar on Wednesday and was weighed down by foreign capital outflows, a strong dollar overseas and a surge in crude oil prices.
The rupee was lower against the dollar at 78.86, and finally settled at 79.03, down 18 paise over its previous close.
The rupee touched a new all-time low of 79.05 against the American currency during the session.
The rupee fell by 48 paise to close at the record low of 78.85 against the US dollar on Tuesday.
The domestic unit has lost 1.97 per cent so far this month and has eroded a staggering 6.39 per cent since the beginning of the year.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.13 per cent higher at 104.64.
High demand and tighter dollar liquidity after quarter-end rebalancing weighed on the rupee's value, despite the fear of dollar shortages and foreign fund outflows, according to a research analyst from HDFC Securities, who said the rupee depreciated after risk-averse sentiment and weaker regional currencies.
The short-term outlook for spot USD INR remains bullish, and one can see a level of 79.10 in the coming days while the lower side support has been shifted to 78.38, Parmar said.
The global oil benchmark Brent crude futures rose by 0.34 per cent to USD 118.38 per barrel.
The 30 share BSE Sensex ended up at 53,026 on the domestic equity market, which was a 0.28 per cent lower than that of the 30 share BSE Sensex. The broader NSE Nifty fell 51.10 points or 0.32 per cent to 15,799. Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,244. According to stock exchange data, 44 crore were reported to be in 44 crore.