Rupee continues freefall against dollar, hits record low of 74.28

The Indian rupee dropped to a record low on Tuesday afternoon with weakness in domestic shares and some Asian peers weighing on sentiment.

Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit.

Sentiment has also been weaker after the central bank held rates steady in a surprise move on Friday and pushed the rupee to its previous record low of 74.23.

The partially convertible rupee was trading at 74.24/25 per dollar at 0751 GMT, after hitting 74.28 earlier and weaker than its previous close of 74.0750.