Rupee falls 5 paise to hit all-time low of 85.16 against US dollar in early trade

The rupee fell 5 paise to hit a new all-time low of 85.16 against the US dollar in early trade on Tuesday, amid strengthening American currency and sustained outflow of foreign capital.

Forex traders said higher dollar demand as well as an upward momentum in crude oil prices due to volatile geopolitical situation pushed the local unit further downward even as a positive domestic equity market provided some cushion.

They said the strong dollar and soaring bond yields in the US prompted the foreign investors towards profit-booking by selling Indian equities.