The rupee on Friday slipped to a record low of 92.02 against the US dollar during intraday trade before recovering marginally to close at 91.97, as a firm dollar, foreign fund outflows and weak domestic equities continued to pressure the local currency.
At the interbank foreign exchange, the rupee opened at 91.89 and strengthened to 91.82 in early trade. It later touched its lowest-ever level of 92.02 before settling two paise higher than the previous close.
The domestic unit had ended flat at 91.99 on Thursday, while its earlier record low of 92 per dollar was seen on January 23.
Forex traders pointed to sustained foreign institutional investor (FII) withdrawals, a negative trend in equities and volatile global cues as key factors weighing on sentiment.
“Indian rupee recovered from all-time lows on an overnight decline in crude oil and commodity prices. However, recovery in the US dollar index and FII outflows capped sharp gains. Dollar index rose after Donald Trump said that he would announce his nominee to head the US Federal Reserve,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.
Also read: Rupee closes near all-time low at 91.96
The dollar index, which measures the greenback against a basket of six major currencies, was trading 0.45 per cent higher at 96.57.
Brent crude, the global oil benchmark, declined 0.96 per cent to USD 70.03 a barrel in futures trade, offering limited support to the rupee.
Domestic equities closed lower, with the Sensex falling 296.59 points, or 0.36 per cent, to 82,269.78, while the Nifty declined 98.25 points, or 0.39 per cent, to end at 25,320.65.
Foreign institutional investors sold equities worth Rs 393.97 crore on Thursday, according to exchange data.
The Economic Survey, tabled in Parliament on Thursday, described the rupee as “punching below its weight” and noted that “investor reluctance to commit funds to India warrants examination at a time when inflation is under control, and the growth outlook is favourable”.
Follow us
