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UPDATE: Rupee falls to all-time low of 54.46/dollar

Global risk aversion and weak local fundamentals weighed on the Indian currency

Press Trust of India  |  Mumbai 

The rupee tumbled 67 paise to all-time low of Rs 54.46 against the US dollar on the forex market during the midsession today on increased capital outflows and strong demand from importers.

Traders said the Reserve Bank's efforts to curb the falling rupee have failed to arrest the decline and it has surpassed the previous low of Rs 54.32 set on December 15.

They said strengthening of the dollar against major currencies in overseas markets, following renewed worries over deepening euro-zone sovereign debt crisis, and lower openings in equity markets world-wide put pressure on the rupee.

"Economic turmoil globally as well as domestic concerns over rising inflation and melting equities remain a major factor for the current record fall in rupee," said a Delhi-based forex trader.

Meanwhile, the BSE benchmark Sensex dipped below the psychological 16,000 level for the first time since January on heavy selling by foreign funds.

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First Published: Wed, May 16 2012. 13:24 IST