Rupee Hits Fresh Intra-Day Low of 93.49 Against US Dollar Amid FII Outflows and West Asia Tensions
Local Currency Breaches 93-Mark for the First Time
Mumbai, March 20 The Indian rupee fell sharply by 60 paise on Friday to touch a fresh intra-day low of 93.49 against the US dollar, pressured by continued strength in the greenback and sustained outflows from Foreign Institutional Investors (FIIs).At the interbank foreign exchange market, the rupee opened at 92.92 and quickly weakened past the 93 level for the first time. The currency continued its downward trajectory through the session, marking a significant drop from its previous close.
FII Selling and Global Uncertainty Weigh on Sentiment
Persistent selling by foreign institutional investors added to the pressure on the domestic currency. According to exchange data, FIIs offloaded equities worth Rs 7,558.19 crore on a net basis on Thursday.The decline also comes against the backdrop of ongoing geopolitical tensions in West Asia, which have contributed to global uncertainty and impacted capital flows.
Rising Crude Oil Prices Add to Pressure
Forex traders indicated that rising global crude oil prices further weakened the rupee. Concerns over crude potentially reaching USD 180 per barrel also weighed on overall market sentiment, amplifying pressure on the currency.Despite some stability in oil prices during the session, the broader outlook continued to influence trading activity.
Brent crude, the global benchmark, was trading 0.79 per cent lower at USD 107.8 per barrel in futures trade.
Dollar Strength Continues to Dominate
The dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.17 per cent higher at 99.40, reflecting continued strength in the US currency and adding to the rupee’s decline.Domestic Equities Rebound but Fail to Support Rupee
On the domestic front, equity markets showed signs of recovery after the previous session’s decline. The BSE Sensex rose 442.88 points, or 0.60 per cent, to 74,650.12, while the NSE Nifty gained 146.65 points, or 0.64 per cent, to 23,148.80.However, the positive momentum in equities did not translate into support for the rupee, which remained under pressure throughout the trading session.
Previous Close and Market Holiday Context
The rupee had previously closed at a record low of 92.89 against the US dollar on Wednesday, after declining by 49 paise. Forex markets remained closed on Thursday on account of Gudhi Padwa.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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