Rupee sinks to new all-time low of 94.29 against US dollar amid oil surge, strong dollar
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The Indian rupee declined 33 paise to a fresh all-time low of 94.29 against the US dollar in early trade on Friday, weighed down by rising crude oil prices and a stronger greenback amid no breakthrough in the West Asia conflict.
Forex traders said heavy selling in domestic equity markets and sustained foreign institutional investor (FII) outflows further pressured the local unit.
At the interbank foreign exchange, the rupee opened at 94.18 and slipped to 94.29 against the dollar, down 33 paise from its previous close.
Traders will also be watching for potential intervention by the Reserve Bank of India, which stepped in during the previous session to prevent a free fall in the currency.
The currency has weakened nearly 4% since the conflict began late last month, breaching its earlier record low of 93.98 touched this week. It had already fallen 20 paise to close at a record 93.96 on Wednesday. Financial markets remained closed on Thursday due to Ram Navami.
Dollar steady, crude volatile
The dollar index, which measures the greenback against a basket of six currencies, was marginally higher by 0.08% at 99.67.
Brent crude, the global oil benchmark, rose overnight before easing, trading 0.78% lower at $107.1 per barrel in futures trade.
Oil prices softened in the Asian session after US President Donald Trump announced a 10-day pause in strikes on Iran’s energy infrastructure, citing progress in talks with Tehran. He also said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz.
Equities decline; FII outflows persist
On the domestic equity front, benchmark indices declined sharply in early trade. The 30-share BSE Sensex fell 926.92 points to 74,346.53, while the NSE Nifty dropped 280.95 points to 23,025.50.
Foreign institutional investors remained net sellers, offloading equities worth ₹1,805.37 crore on Wednesday, as per exchange data.
Markets in Asia have largely declined after Wall Street recorded its steepest fall since the onset of the Iran war amid growing uncertainty over prospects of de-escalation.