.Rupee Hits Record Low of 94.56 Against US Dollar Amid Rising Oil Prices and Weak Equity Markets
Mumbai, March 27: The Indian rupee plunged to an all-time low of 94.56 against the US dollar during intra-day trading on Friday, breaching the crucial 94.50 level for the first time. The sharp depreciation was driven by surging global oil prices, a strengthening US dollar, and continued geopolitical tensions in West Asia with no signs of resolution.
Forex traders attributed the rupee’s decline to sustained foreign fund outflows and a steep fall in domestic equity markets, which further weakened investor sentiment.
At the interbank foreign exchange market, the rupee opened at 94.18 and continued its downward trajectory, falling 60 paise from its previous close to hit the record low during the session.
Earlier this week, the rupee had already weakened by 20 paise to close at a then-record low of 93.96 against the US dollar on Wednesday. Financial markets, including stock, forex, commodity, and bullion segments, remained closed on Thursday on account of Ram Navami.
Market experts highlighted strong dollar demand from oil importers as a key factor behind the rupee’s fall. Meanwhile, exporters continued to sell dollars, partially offsetting the pressure.
The US dollar index, which measures the greenback against a basket of major global currencies, rose 0.08% to 99.67, indicating sustained dollar strength.
Global crude oil prices also remained elevated, with Brent crude hovering around USD 107.4 per barrel in futures trading, despite a slight decline of 0.53% after a sharp overnight surge.
On the domestic stock market front, benchmark indices witnessed significant losses. The Sensex dropped 1,212.15 points (1.61%) to 74,061.30, while the Nifty declined 355.20 points (1.52%) to 22,951.25.
Foreign institutional investors (FIIs) continued to offload Indian equities, selling shares worth Rs 1,805.37 crore on a net basis on Wednesday, adding further pressure on the rupee.
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