The Indian rupee fell by 5 paise to reach a new all-time low of 85.16 against the US dollar in early trade on Tuesday. The decline came as a result of a stronger American currency and ongoing outflows of foreign capital. According to PTI, the rupee opened at 85.10 against the greenback, but quickly slid further to hit the record low of 85.16, marking a loss of 5 paise from its previous close.

The persistent demand for the US dollar, coupled with rising crude oil prices, significantly impacted the rupee's value. The volatile geopolitical environment has contributed to the upward momentum in crude oil prices, which in turn, exerted additional pressure on the Indian currency. Forex traders noted that despite the positive sentiment in the domestic equity markets, the rupee's decline continued as the dollar remained strong globally.