Forex traders said that foreign fund outflows and rising crude oil prices also kept pressure on the Indian rupee. The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy decision later in the day.
Markets were nervously awaiting the start of two-day trade talks in Washington later in the global day to see if Chinese negotiators can convince the White House to back down on a threatened tariff hike Friday.
This has played out despite a chorus predicting after the financial crisis that the dollar might finally surrender some of its dominance; that, in an age of pushback to American exceptionalism, it was time for someone else’s money to have a turn.
Besides, dollar-selling by exporters and banks, fall in crude prices in the global market and weakness in the dollar against some currencies overseas amid US-China trade conflict, helped the domestic currency rebound, forex dealers said.
At the Interbank Foreign Exchange (Forex) market, the local currency opened at record low of 72.15 a dollar from its previous close of 71.73 and slipped to hit a fresh low of 72.18, down by 45 paise. It had breached its previous record low of 72.11 hit on September 6.