The rupee plunged 64 paise to settle at an all-time low of 93.53 against the US dollar on Friday, pressured by persistent foreign fund outflows and a sharp rise in global crude oil prices amid escalating geopolitical tensions.
At the interbank foreign exchange market, the domestic unit opened at 92.92 and quickly breached the 93-mark for the first time. It continued to weaken through the session before closing at its record low, down from the previous close of 92.89 on Wednesday. Forex markets were shut on Thursday for Gudhi Padwa.
Market participants said the currency is facing sustained pressure from a “double whammy” of capital outflows and rising energy costs. Elevated crude oil prices, driven by concerns over supply disruptions linked to the ongoing West Asia conflict, have worsened sentiment and raised fears of a widening trade deficit and higher inflation.
Brent crude, the global benchmark, hovered above USD 108 per barrel, while the dollar index gained strength, reflecting a broader shift towards safer assets.
Foreign institutional investors remained net sellers, offloading equities worth Rs 5,518.39 crore, further weighing on the rupee.
Meanwhile, India’s forex reserves declined by USD 7.052 billion to USD 709.759 billion in the week ended March 13, according to RBI data.
Despite the currency slide, domestic equity markets showed some resilience, with the Sensex and Nifty closing higher after recovering from the previous session’s losses.
Also read: Rupee hits record low, slips past ₹93 against US dollar
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