Rupee slides 22 paise against $

Mumbai: The rupee tumbled by 22 paise to settle at a nearly three-week low of 71.54 against the $ on Tuesday as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment.

Besides, sustained foreign fund outflows and subdued equities also put pressure on the rupee. Starting off the session on a weaker note, the rupee weakened further to hit the day's low of 71.56 against the American currency.

The domestic unit finally settled down by 22 paise at 71.54, a level not seen since January 30. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.15 per cent to 99.15.

The 10-year government bond yield was at 6.39 per cent. Global crude oil benchmark Brent futures dropped 1.89 per cent to trade at USD 56.58 per barrel.

"Rupee started the day on a weak note crossing beyond 71.50, majorly on back of selling from institution in risky assets as FIIs (are) likely to be pulling out money from equities as the global market weighs slowdown effects of rising Coronavirus threat in China," LKP Securities Senior Research Analyst (Commodity & Currency) Jateen Trivedi said.