Rupee Vs Dollar Currency Exchange Today | Photo Credit: Indiatimes

New Delhi: The Indian rupee continued its downward trend on Thursday and fell 43 paise against the US dollar to a fresh all-time low of 73.77. Rising crude oil price and continued selloff by foreign portfolio investor (FPI) weighed on the rupee.

On Wednesday, the rupee ended at 73.34 against US dollar at the interbank foreign exchange market. The rupee crossed the psychological level of 73 per dollar and closed beyond 73/$ mark for the first time ever on Wednesday.

Brent crude, a benchmark of international crude prices, is trading near a four-year high of more than $86 per barrel mark. Brent crude prices have risen nearly 10 per cent in last one month itself. The rise in crude oil brings bad news for India which imports nearly 80 per cent of its crude requirement. Analysts fear the recent surge in crude oil price will increase India's current account deficit and fiscal deficit as well.

Meanwhile, FPIs have been continuously selling Indian bonds and shares and taking capital out of the country on account of rising interest rate in the economy. Rising interest rates are bad for both fixed income and equity investors as it reduces their return from the asset. Foreign portfolio investors have sold off about Rs 21,000 crore from India’s capital markets in the month of September itself.

Further, the strengthening US economy and rising interest rates in the US are making assets in emerging economies like India unattractive, say analysts.

Sell off in the equity market is putting further pressure on the rupee. The Sensex opened nearly 600 points lower on Thursday in addition to yesterday's 551 points plunge.