Rupee sinks to new low of 67 against dollar

The rupee on Wednesday breached 67 mark against the dollar by falling 118 paise to trade at a lifetime low of 67.42 on strong demand for the US currency amid rising concerns over fiscal burden after the passage of the Food Bill.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 67.06 a dollar from its previous close of 66.24 and breached 67 mark to trade at a fresh low of 67.42, down by 118 paise.

Forex dealers said besides strong month-end demand for the American currency from importers, concerns related to subsidy burden after the passage of Food Security Bill and capital outflows mainly weighed on the domestic currency.

The rupee had recorded a steep fall of 194 paise to close at record low of 66.24 against the dollar in the previous session.