Rupee hits record low of 93.08 against US dollar; FII outflows, strong greenback weigh

The rupee depreciated 19 paise to touch its record intra-day low of 93.08 against the US dollar in early trade on Friday, pressured by continued foreign institutional investor (FII) outflows and a strengthening greenback amid the ongoing West Asia conflict. 

Forex traders said elevated global crude oil prices further weighed on the domestic currency, although a firm opening in domestic equity markets helped limit sharper losses. 

At the interbank foreign exchange, the rupee opened at 92.92 against the US dollar and slipped past the 93-mark for the first time to trade at 93.08, down 19 paise from its previous close. 

The domestic unit had settled 49 paise lower at a record closing low of 92.89 against the dollar on Wednesday. Forex markets remained closed on Thursday on account of Gudhi Padwa. 

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.17% at 100.25. 

Brent crude was trading 1.64% lower

Brent crude, the global oil benchmark, was trading 1.64% lower at $106.9 per barrel in futures trade. It briefly spiked above $119 per barrel in early trade, up from around $70 before the onset of the Iran war, triggering the initial market sell-off.

Stocks in Europe and Asia fell sharply early Thursday as oil prices surged, but US markets recovered from steep losses later in the session as crude prices retreated.

In the domestic equity market, benchmark indices opened sharply higher, supported by gains in IT and PSU bank stocks. As of 10.05 am, the Nifty50 was up 232.10 points or 1.01% at 23,234.25 while the Sensex rose 748.00 or 1.01% to 74,955.24. 

In the BSE Sensex pack, Tata Steel led the gainers with a 4.09% rise, followed by State Bank of India, which advanced 3.29%. Tech Mahindra climbed 2.60% while Larsen & Toubro gained 2.27%.

The Nifty India Volatility Index declined 4.9 per cent to 21.69 shortly after the opening bell. 

In Asia, South Korea’s Kospi and China’s Shanghai Composite were trading higher, while Hong Kong’s Hang Seng index was lower. US markets ended in negative territory on Thursday. 

Foreign institutional investors remained net sellers, offloading equities worth ₹7,558.19 crore on Thursday, as per exchange data.