A number of macro-factors that are currently into play are putting a downward pressure on the domestic unit and after settling marginally up at 67.99 against the dollar on Monday has again retreated lower by 4 paise to trade at 68.03.
The larger fund outflow by the foreign institutions driven by higher rates in the US economy coupled with some of the economic factors such as threat of current account deficit situation worsening is already playing havoc with the Indian rupee.
As per provisional data, FPIs offloaded shares worth Rs. 754.43 crore from the Indian markets on Monday.
Importers increased emand for American dollar plus huge foreign outflow is further adding pressure on the currency.
However, as per dealers, the gain in other currencies including yen and euro has capped the fall in the Indian rupee.