The rupee on Tuesday closed at a record low against the US dollar, weighed down by the strength of the greenback and weakness in other Asian currencies.

At the inter-bank forex market, the domestic unit finished at 83.57 against the US dollar, a loss of six paise over the last close of 83.51.

The earlier record low close for the domestic currency was on June 4 when the ruling BJP failed to garner a simple majority. It had then ended at 83.53 to the US dollar.

Forex circles said that the rupee could have slipped further had it not been for the intervention from the Reserve Bank of India (RBI). After opening at 83.49, the rupee fell to an intra-day low of 83.58 and later shut shop at 83.57.

Apart from a muted trend in the stock markets where the benchmark Sensex fell by 33 points, the rupee’s fall has also been attributed to a strength in the US dollar.

This was reflected in the Dollar Index, which measures its strength against a basket of six currencies.

The DXY was trading firm above the 105 mark at 105.43 at the time of this report after hitting a day’s high of 105.45.

It had last closed at 105.15. Its gain comes amid fears in some quarters that the US Fed could hold rates at higher levels for a longer period given stubborn inflation.

Weakness in Asian currencies like the South Korean won, which was down 0.15 per cent, also contributed.

“We expect the rupee to trade with a slight negative bias on the strong US dollar and elevated crude oil prices. However, positive global markets and fresh foreign inflows may support the rupee at lower levels,” Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, said.