PTI Mumbai

The rupee extended its slide for the second straight session and declined 17 paise to hit a fresh record low of 85.91 against the US dollar on Wednesday amid higher crude oil prices and stronger American currency.

Lacklustre sentiment in domestic equity markets and sustained outflow of foreign funds also played spoilsport even as investors stayed cautious over lower economic growth projection by the government, forex analysts said.

At the interbank foreign exchange, the rupee opened at 85.82 and lost further ground to finally settle at 85.91 against the dollar, 17 paise lower than its previous close. On Tuesday, the rupee settled with a loss of 6 paise at 85.74 against the dollar.

"This decline is attributed to the strengthening of the US dollar, bolstered by positive economic indicators from the US, including robust labour market data and increased activity in the services sector. These factors have led to a rise in US Treasury yields, making the dollar more attractive to investors," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.