Rupee hits record low of 61.60 against dollar

The Indian rupee slumped to a record low of 61.60 against a dollar Tuesday, due to fresh dollar demands from banks and importers and weakness in the stock markets.

The partially convertible rupee fell to a new record low of 61.60 against a dollar at around noon trading at the inter-bank foreign exchange market here, surpassing its previous low of 61.21 hit on July 8.

The value of the rupee depreciated by 72 paise. The Indian currency had closed at 60.88 against a US dollar Monday.

"The Indian rupee is feeling the pinch of negative sentiments in the local markets," India Forex Advisors said in a report.

The Indian equity market was trading in the red. The benchmark Sensex of the Bombay Stock Exchange fell below the 19,000-point mark. The index was ruling weak for the ninth day in the past 10 trading sessions.

High demands for the US currency from banks and importers also put pressure on the Indian currency.