Rupee Falls to Record Low Amid Global Concerns

Rupee Falls Below 94/USD for First Time Amid Rising Crude Prices and FII Outflows​

Mumbai, March 23 – The Indian rupee breached the 94 per US dollar mark for the first time on Monday, falling 50 paise to a provisional 94.03 amid soaring global crude prices, continued foreign fund outflows, and a strengthening US dollar.

Currency Movement​

• The rupee opened at 93.84 in the interbank market and gradually weakened throughout the day.
• On Friday, the rupee had already crossed the 93/USD mark, closing at 93.53, down 64 paise.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, noted that escalating West Asia geopolitical tensions, weak domestic markets, rising crude oil prices, and FII outflows contributed to the rupee’s decline. He expects the USD-INR to trade in a range of ₹93.60–94.40, with occasional support from the Reserve Bank of India (RBI).

Global and Domestic Factors​

• The dollar index, measuring the US dollar against six major currencies, rose 0.14% to 99.78.
• Brent crude traded 1.11% lower at USD 113.4 per barrel in futures.

Impact on Domestic Markets​

• Sensex fell 1,836.57 points (2.46%) to 72,696.39
• Nifty 50 dropped 484.30 points (2.10%) to 22,630.20
• Foreign Institutional Investors (FIIs) sold equities worth ₹5,518.39 crore on Friday

Forex Reserves​

India’s foreign exchange reserves declined by USD 7.052 billion, reaching USD 709.759 billion during the week ended March 13, according to the RBI.