MUMBAI -The Indian rupee tanked by 56 paise to a historic low of Rs 53.40 per US dollar in early trade on Tuesday due to persistent demand for the American currency from banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets.
The rupee resumed lower at Rs 53.10/11 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 52.84/85 per dollar, and dropped further to an all-time low of Rs 53.40 per dollar before quoting at Rs 53.27/28 per dollar at 10.30 hours.
Sustained dollar demand from banks and importers in view of a stronger dollar in overseas markets and foreign capital outflows affected the rupee value against the dollar, a forex dealer said.
The US dollar gained against major currency rivals in the New York market on Monday, while the euro fell to its lowest level in two weeks amid renewed concerns that European leaders aren’t doing enough to contain the region’s sovereign debt crisis.
Meanwhile, the BSE benchmark Sensex was down by 12 points, or 0.07%, in early trade.