Rupee breaches 74-mark now, hits low of 74.06 against US dollar

The rupee tanked to an all-time low, surpassing the crucial 74-mark against the US Dollar during afternoon trade session on Monday.

The rupee hit an intra-day low of 74.0150 against the US dollar.

The dollar strengthened after China's central bank eased its domestic policy to support the economy.

China's central bank said on Sunday that it was cutting the reserve requirement rations (RRRs) by 1 per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system, amid a deepening trade war with the US that has increased pressure on growth in the world's second-largest economy.

Forex dealers said the dollar's strength against major global currencies weighed on the rupee sentiment.

On Friday, the rupee had lost 18 paise to end at a record low of 73.76 after collapsing to a lifetime low of 74.23 (intra-day) after the RBI unexpectedly kept the policy rate unchanged.

Foreign investors have pulled out over Rs 9,300 crore (USD 1.3 billion) from the Indian capital markets in the last four trading sessions.