Rupee falls 2 paise to all-time low of 84.13 against US dollar in early trade

rupee fell 2 paise to an all-time low of 84.13 against US dollar in early trade on Tuesday, as persistent foreign fund outflows and a muted trend in domestic equities dented investor sentiments.

Forex traders said all eyes are on US as it decides its next President. Markets are bracing for potential volatility over coming days, especially with Federal Reserve's monetary policy anuncement also scheduled this week.

At interbank foreign exchange, rupee opened at 84.13 against greenback, registering a fall of 2 paise over its previous close.

On Monday, rupee fell 4 paise to settle at a record low level of 84.11 against US dollar.

rupee closed at an all-time low on Monday and opened at a new low of 84.13 as US elections rattled stock markets amid persistent foreign fund outflows, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

" Reserve Bank of India ( RBI ) was present to absorb fall but has been allowing small bouts of depreciation taking rupee to new lows against dollar," Bhansali added.

Meanwhile, dollar index, which gauges greenback's strength against a basket of six currencies, was trading 0.03 per cent higher at 103.91.

Brent crude, global oil benchmark, rose 0.19 per cent to USD 75.22 per barrel in futures trade.

Forex traders said rupee is likely to trade in a narrow range during day as strong dollar weighs on local unit and rising crude oil prices dragged down local unit, while any intervention by RBI may also support local currency at lower levels.

On domestic equity market front, Sensex declined 184.51 points, or 0.23 per cent, to 78,597.73 points. Nifty fell 50.85 points, or 0.21 per cent, to 23,944.50 points.

Foreign institutional investors (FIIs) were net sellers in capital markets on Monday, as y offloaded shares worth Rs 4,329.79 crore, according to exchange data.

Meanwhile, India's manufacturing sector growth recovered from September's eight-month low to 57.5 in October fuelled by faster increases in total new orders and international sales, a monthly survey said on Monday.