The Indian Rupee weakened against the US Dollar on Thursday, ending 16 paise lower at 92.17. During the day’s trading session, the rupee touched a record low of 92.36 before recovering slightly toward the close.
At the interbank foreign exchange market, the rupee opened at 92.25 against the dollar and continued to slide during early trade. The currency later trimmed some of its losses but still closed lower compared to the previous session. Earlier this week, the rupee’s previous intra-day record low was 92.35, recorded on March 9.
Rising Crude Oil Prices Weigh on Rupee
Analysts said the rupee faced strong pressure due to a sharp rise in global crude oil prices and ongoing geopolitical tensions in West Asia. The global oil benchmark Brent Crude surged nearly 5.7 percent to USD 97.22 per barrel in futures trading.
Higher oil prices typically weaken the Indian currency because India imports a large portion of its crude oil requirements, increasing demand for dollars in international trade.
Strong Dollar And Weak Markets Add Pressure
The rupee also came under pressure from a stronger US dollar globally. The US Dollar Index, which tracks the American currency against six major global currencies, was trading around 0.15 percent higher at 99.38 during the session.
According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the currency weakened due to a combination of rising oil prices, foreign investor outflows and the strengthening dollar. However, the rupee managed to recover slightly during the day amid expectations that the Reserve Bank of India may have intervened in the market to support the currency.
Stock Market Decline Adds to Currency Weakness
Weakness in domestic equity markets also weighed on the rupee. The benchmark BSE Sensex dropped 829.29 points, or 1.08 percent, to close at 76,034.42. Meanwhile, the Nifty 50 declined 227.70 points, or 0.95 percent, ending the session at 23,639.15.
Foreign institutional investors (FIIs) also remained net sellers in the market. According to exchange data, they sold equities worth ₹6,267.31 crore on Wednesday, adding further pressure on the rupee.
Outlook for the Currency
Market experts believe the rupee may continue to face volatility in the near term due to elevated crude oil prices and global uncertainty. Analysts expect the USD-INR pair to trade in the range of ₹91.70 to ₹92.40 in the coming sessions.