New Delhi: The rupee hit a new lifetime low of 74.27 against the US dollar in afternoon trade on Tuesday after gaining 18 paise in the morning trade.

Traders said the sudden fall is due to Brent crude oil breaching the $84 mark and the US currency strengthened overseas. Unabated foreign fund outflows also weighed on the local currency. 

The domestic unit on Tuesday opened higher at 73.93 and advanced to 73.88 on fresh selling by exporters amid weakness in dollar against the emerging market currencies. However, it turned weak and plunged to trade at a record low of 74.27.

Rupee had reached the 74.23 mark on October 5. Foreign institutional investors (FIIs) sold shares net worth a net of Rs. 1,805 crore on Monday. 

Investors remained concerned over sustained foreign capital outflows and rise in crude oil price to 84.48. 

Forex dealers said besides strong demand for the American currency from importers, concerns rising fiscal deficit and capital outflows weighed on the domestic currency.