New Delhi: The rupee on Tuesday sank to fresh record low of 72.97 against dollar as prices of crude oil moved higher.

Government's last week announcements regarding an array of steps, including removal of withholding tax on Masala bonds, relaxation for FPIs, and curbs on non-essential imports, to contain the widening CAD and check the rupee fall, could not seem to hold the Indian currency's further depreciation today.

The local currency had hit a lifetime closing low of 72.69 against the US dollar and also touched an all-time intra day low of 72.92 last week.

The rupee has been one of the worst performing currencies in the emerging markets in the midst of global headwinds and concerns over the widening trade deficit on the back of rising oil prices.

The International Monetary Fund (IMF) today said that Indian rupee has 'effectively' depreciated only 6-7 percent this year after adjusting it to inflation, almost half of the actual drop in the value of the currency this year.

IMF has, however, warned that the rupee depreciation would jack up the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation.

Market benchmark BSE Sensex Tuesday tumbled by about 295 points or 0.78 per cent to close at 37,290.67 due to increasing crude oil prices and mounting trade tension. It had lost 505.13 points or 1.33 percent on Monday as rupee woes and trade war worries spooked investors.

With PTI Inputs