Indian Rupee Hits Fresh Low at 92.48 Against US Dollar Amid Continued Pressure
Rising crude prices, foreign investor outflows and global uncertainty push the rupee lower despite likely intervention by Reserve Bank of India.
Mumbai: The Indian Rupee weakened further on Friday, ending the session at 92.46 against the US Dollar after briefly touching a historic low of 92.48 during trading. The currency declined by 27 paise from the previous close of 92.19 as rising crude oil prices and strong demand for dollars weighed on market sentiment.
Traders said the fall might have been sharper but for likely intervention by the Reserve Bank of India to curb excessive volatility in the foreign exchange market.
Global energy markets have remained tense as the conflict in the Gulf region enters its second week, pushing crude oil prices close to $100 per barrel. The situation has increased worries about prolonged geopolitical instability and its impact on financial markets.
The rupee also faced pressure from heavy foreign fund outflows. Overseas investors have sold nearly $5 billion worth of Indian equities so far this month, contributing to the decline in the domestic currency. During the same trading session, benchmark stock indices in India dropped around two percent, reflecting broader market weakness.
Market experts noted that a stronger dollar and sustained foreign institutional investor (FII) selling have amplified the pressure on the rupee. They also pointed out that several Asian currencies have weakened in recent sessions as investors moved funds toward the dollar amid global uncertainty.
Currency markets elsewhere showed similar trends, with the euro falling to a seven-month low against the dollar, while the dollar index climbed to around 100, indicating broad strength in the US currency. Analysts believe the rupee may continue to remain under strain unless geopolitical tensions ease and crude prices stabilise.
