Rupee hits record low of 56.50, recovers slightly later

Mumbai, May 31: The

tumbled by 26 paise on Thursday to trade at a new all-time low of Rs 56.50 against the US dollar in early trade on increased capital outflows and strong demand from importers for the American currency.

Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a two-year low on continued eurozone worries and strong month-end demand from importers, particularly oil refiners, mainly put pressure on the rupee. Yesterday, the rupee had lost 57 paise to close at record low of 56.24 despite RBI's efforts to prop it up. Meanwhile, the BSE benchmark Sensex plunged over 148 points, or 0.91 per cent, to 16,164.00 in early trade on Thursday.

The US dollar, however, ended lower against the rupee at Rs 56.08/09 per dollar and the Pound Sterling also turned lower at Rs 86.97/99 per pound at the close of the Interbank Foreign Exchange Market (Forex) here today.

PTI