The rupee hit to an all-time low against the dollar in early trading on Tuesday due to continued foreign investment outflows and rising global crude oil prices. This comes after the Sensex gained for the second day in a row on Tuesday.
In early trade, the rupee slipped 14 paise to 77.69 against the US dollar.
On Friday, the rupee gave up its early gains and fell 5 paise to 77.55 per dollar, a new lifetime low, as inflation fears and the strength of the US dollar weighed on the local currency.
The rupee stabilised in a narrow range, according to forex dealers, as regional currency weakness and dismal economic data weighed on the domestic currency, while Reserve Bank of India (RBI) intervention limited the losses.
The rupee has lost 65 paise in a week due to a stronger dollar index, risk-off attitude, and outflows of foreign funds.
Meanwhile, telecom operator Bharti Airtel and refiner Indian Oil Corp both rose 0.3 percent and 1% on Tuesday, respectively, ahead of their quarterly earnings releases.
Despite investor concerns that the global economic recovery may be more fragile than expected, Asian stocks rose.