Rupee Hits Record Low Against US Dollar Amid Global Economic Pressures

Rupee Declines to New Low

On Wednesday, the Indian rupee fell by 18 paise, reaching a historic low of 92.58 against the US dollar. This decline is attributed to a robust dollar in international markets and ongoing foreign capital outflows. Forex traders noted that rising crude oil prices, driven by escalating tensions in West Asia, have further weakened market sentiment.

The local currency began trading at 92.42 against the dollar in the interbank foreign exchange market, fluctuating between 92.46 and 92.47 before dropping to 92.58. The rupee had previously touched an intra-day low of 92.47 on Tuesday, ultimately closing at an unprecedented low of 92.40.

"The rupee's new low comes ahead of significant meetings by major central banks, as the Reserve Bank of India permitted the breach of the 92.50 mark," stated Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

In related market movements, the dollar index, which measures the dollar's strength against a basket of six currencies, was up by 0.05 percent at 99.62. Meanwhile, Brent crude oil, a global benchmark, was trading 0.19 percent lower at USD 103.2 per barrel in futures.

On the domestic equity front, the Sensex gained 719.77 points, or 0.95 percent, reaching 76,790.61, while the Nifty rose by 215.75 points, or 0.91 percent, to 23,796.90. However, foreign institutional investors sold equities worth Rs 4,741.22 crore on a net basis on Tuesday, according to exchange data.