The rupee tumbled 54 paise to close at 74.98 (provisional) against the U.S. dollar on October 6 as a stronger greenback against key rivals and rising crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the local currency opened at 74.63 and witnessed an intra-day high of 74.54 and a low of 74.99 against the U.S. dollar in day trade.
The local unit finally settled at 74.98 a dollar, down 54 paise over its previous close.
On October 5, the rupee had settled at 74.44 against the U.S. dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.41% higher at 94.36.
Meanwhile, Brent crude futures, the global oil benchmark, declined 0.55% to $82.11 per barrel.
On the domestic equity market front, the BSE Sensex ended 555.15 points or 0.93% lower at 59,189.73, while the broader NSE Nifty declined 176.30 points or 0.99% to 17,646.00.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹1,915.08 crore, as per exchange data.
On the macro-economic front, international ratings agency Moody's on October 5 upgraded India's rating outlook to 'stable' from 'negative', saying a recovery is underway in the Asia's third-largest economy and growth this fiscal will surpass the pre-pandemic rate.
Moody's Investors Service however kept India's sovereign rating at 'Baa3' — which is the lowest investment grade, just a notch above junk status.
