Rupee Hits Fresh Record Low of 94.70 Against US Dollar Amid Oil Price Surge, Weak Markets
Mumbai, March 27: The Indian rupee plunged to a fresh all-time low of 94.70 against the US dollar during intra-day trading on Friday, pressured by rising global oil prices, a stronger dollar, and ongoing geopolitical tensions in West Asia.
The sharp depreciation was further exacerbated by a steep decline in domestic equity markets and continued outflows by foreign institutional investors, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 94.18 and extended losses throughout the session. It breached the key 94.50 level before sliding 74 paise to hit 94.70 against the US dollar.
Earlier this week, the rupee had weakened by 20 paise to close at a then-record low of 93.96 on Wednesday. Financial markets remained shut on Thursday on account of Ram Navami.
Market participants highlighted strong dollar demand from oil companies and importers as a major factor behind the rupee’s decline, while exporters held back inflows.
The US dollar index, which tracks the greenback against a basket of six major currencies, rose 0.08% to 99.67, indicating continued global strength in the dollar.
Meanwhile, Brent crude prices surged overnight before easing slightly to around $107.4 per barrel in futures trading, reflecting persistent supply concerns.
On the domestic equities front, benchmark indices witnessed significant losses. The Sensex fell 1,190.76 points (1.58%) to 74,082.69, while the Nifty dropped 352.25 points (1.51%) to 22,954.20.
Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹1,805.37 crore on Wednesday, adding further pressure on the rupee.
Analysts expect the rupee to remain volatile in the near term, tracking global oil price movements, dollar strength, and geopolitical developments.
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