Snapping its two-day winning streak, the rupee slumped by 15 paise to end at 77.40 (provisional) against the US dollar on Thursday, following risk-off sentiments amid increasing concerns over inflation globally.Weak domestic equities, surging US dollar in overseas markets and persistent foreign fund outflows also weighed on the rupee which plunged to its all-time intra-day low of 77.63 against the US dollar, forex traders said.
At the interbank forex market, the rupee opened steeply lower at 77.52 against the greenback and moved in a range of 77.36 to 77.63 in the day trade. The rupee finally ended at 77.40, down by 15 paise over its previous close. The rupee had settled at 77.25 against the US dollar on Wednesday.
On May 9, the domestic unit had closed at the record low of 77.44 against the greenback. Global equity markets went into a tailspin after higher-than-expected US retail inflation data for April fanned fears of aggressive rate hikes by the US Federal Reserve which could hamper growth, analysts said.
On the domestic equity market front, the BSE Sensex ended 1,158.08 points or 2.14 per cent lower at 52,930.31, while the broader NSE Nifty fell 359.10 points or 2.22 per cent to 15,808.
The dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.52 per cent to 104.39. Foreign institutional investors remained net sellers in the capital market on Wednesday, as they offloaded shares worth ₹ 3,609.35 crore, as per stock exchange data.