Mumbai, July 23: The rupee declined 5 paise to hit an all-time low of 83.71 (provisional) against the US dollar on Tuesday after the government raised tax rates on capital gains in the FY25 Budget. Besides, a weak tone in the US dollar and weakness in crude oil prices also put pressure on the domestic unit, forex traders said.
At the interbank foreign exchange market, the local unit opened at 83.64 and touched an intraday high of 83.61 and touched an all-time intraday low of 83.71 against the dollar during the trading session.
It finally settled at an all-time low of 83.71 (provisional) against the American currency, registering a fall of 5 paise from its previous close. On Monday, the rupee consolidated in a narrow range to settle 4 paise higher at 83.66 against the American currency.
"Indian rupee fell to a new low of 83.72 and also closed on a new record daily of 83.68. Dollar buying continued to be the theme after the increase in LTCG and STCG and then the removal of indexation benefits. The rupee looks vulnerable to 84 soon as the RBI absorbs the US dollar supply," Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.03 per cent at 104.34. Brent crude futures, the global oil benchmark, were trading higher by 0.24 per cent at USD 82.60 per barrel.