The Indian rupee. Photo: AFP
The Comptroller General of Accounts' data for April 2020 show that the federal government's share of tax collection during April was 167 billion rupees (US$2.21 billion) compared with 553 billion rupees in the previous year. Photo: AFP

The Indian rupee opened at an all-time low before slipping further and touching a record low of 73.41 per dollar, breaching the 73 mark for the first time ever.

However, it later recovered over 40 paise to reach 72.96 amid reports the Indian government was in talks with the central bank for a special dollar swap window with some state-run fuel retailers.

The rupee opened at 73.24 some 33 paise down from Monday’s close of 72.91 per dollar. The market had remained closed on Tuesday, which was Mahatma Gandhi’s birthday.

The Indian currency is expected to remain under pressure as Brent crude remains high amid worries that global supplies will drop due to Washington’s sanctions on Iran, which will come into effect from November 4.

Iran’s oil industry supplies nearly 3% of the world’s daily consumption.

Other factors weighing against the rupee include the hardening US currency and sustained foreign capital outflows.

Foreign institutional investors (FIIs) have been selling shares and bonds on a continuous basis and this has dampened investor sentiment.

The rupee has lost nearly 12% this year, making it the worst performing Asian currency.