Rupee vs Dollar: The Indian rupee continues to fall. It hit a record low on Tuesday. Today it was at 84.0725 against the US dollar, almost unchanged from its close at 84.06 on Monday. The rupee hit an all-time low of 84.0750 in the previous session. After weakening below 84 for the first time last week. The rupee is down about 0.3 percent this month, but has performed better than its regional peers, which have fallen between 0.8 percent and 3 percent amid a surge in the US dollar.

Forex traders said the rupee was trading in a narrow range as support from positive domestic markets was being eroded by foreign capital outflows. Besides, crude oil prices also rose by 10 percent, widening India's already worrisome trade deficit. Meanwhile, the dollar index, which gauges the US dollar's strength against a basket of six major currencies, was down 0.05 percent at 103.25. International benchmark Brent crude was up 2.89 percent at $75.22 per barrel.

The dollar index was at 103.3 on Tuesday, its strongest level in over two months, according to Reuters. Other Asian currencies fell 0.1% to 0.8%, possibly by their custodial clients. Continued outflows from local equities have hurt the local currency this month. Foreign investors have pulled out nearly $8 billion so far. Benchmark equity indices BSE Sensex and Nifty 50 were down about 0.2% on Tuesday, offsetting gains in most other Asian equities.

Amit Pabari, managing director at FX advisory firm CR Forex, said the local currency is expected to trade between 83.90 and 84.10 in the near term. However, with the right mix of RBI intervention and favorable global trends, the rupee could bounce back to 83.80. Meanwhile, the dollar-rupee forward premium declined, with the 1-year implied yield falling 1 basis point to 2.20%, under pressure from a rise in near-mature US bond yields. The 1-year US Treasury yield rose 7 basis points to 4.25% in Asia hours.