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Rupee hits record low against US dollar

Mumbai: The Indian rupee hit a record low of 77.58 against the US dollar on Monday amid unabated outflow of foreign funds after the Federal Reserve hiked policy interest rates last week.

At the interbank foreign exchange market, the rupee settled at 77.50 against the US dollar, down 60 paise from its previous close of 76.90 hit on Friday.

Earlier, the rupee opened sharply lower at 77.17 against the dollar and hit a record low of 77.58 in the intra-day.

The Indian currency hit a new intra-day as well as the closing low. The previous record closing low of the Indian currency was 76.98 against a dollar hit on March 7. On Monday a new record of 77.50 against a dollar was hit.

The American currency has strengthened against major global currencies after the Federal Reserve last week hiked the policy interest rate by 0.50 per cent. This has led to rise in US Treasury yields contributing to the strength to the dollar.

In the last two trading sessions, the Indian rupee has weakened by 115 paise against the US dollar. The rupee had lost 55 paise against a dollar on Friday.