The Indian rupee depreciated 31 paise to 92.32 against the US dollar in early trade on Thursday, weighed down by persistent foreign institutional investor (FII) outflows, a sharp rise in global crude oil prices, and a stronger greenback as tensions in West Asia continued to escalate. 

Traders said a weak opening in domestic equity markets also added pressure on the local currency. 

At the interbank foreign exchange market, the rupee opened at 92.25 against the US dollar and declined further to 92.32 in early deals, down 31 paise from its previous close. 

The domestic unit had settled 16 paise lower at 92.01 against the US dollar on Wednesday. 

Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading 0.24 per cent higher at 99.47. 

Brent crosses $100 mark on supply disruption fears 

Global oil prices surged sharply amid geopolitical tensions. Brent crude, the international benchmark, was trading 9.94 per cent higher at $101.12 per barrel in futures trade. 

The spike in crude prices comes as Iran intensified attacks aimed at increasing economic pressure on the United States and Israel to end the conflict that began nearly two weeks ago. However, there were no immediate signs of de-escalation. 

Iran has reportedly targeted oil fields and refineries in Gulf Arab nations and disrupted cargo traffic through the Strait of Hormuz, a key shipping route through which nearly one-fifth of global oil trade passes. 

In response, the International Energy Agency (IEA) agreed on Wednesday to release 400 million barrels of oil from emergency reserves—the largest such release in its history—to stabilise energy markets. The United States is also expected to release 172 million barrels from its Strategic Petroleum Reserve next week to counter rising fuel prices. 

Stock markets tumble in early trade 

On the domestic equity front, the benchmark indices closed sharply lower on Wednesday. The BSE Sensex plunged 827.58 points, or 1.08%, to settle at 76,036.13 while the NSE Nifty declined 310.55 points, or 1.13%, to close at 23,556.30. 

In early trade on Thursday, the 30-share BSE Sensex fell 992.53 points to 75,871.18, while the 50-share NSE Nifty slipped 310.55 points to 23,556.30. 

Among the Sensex constituents, Eternal, InterGlobe Aviation, Mahindra & Mahindra, Adani Ports, Titan, and ICICI Bank were among the major laggards. Tech Mahindra, NTPC, and Reliance Industries, however, traded in the green. 

According to exchange data, foreign institutional investors offloaded equities worth ₹6,267.31 crore on a net basis on Wednesday.