The Indian rupee weakened to a fresh intra-day record low of 93.08 against the US dollar on Friday, falling by 19 paise in early trade as persistent dollar strength, continued foreign institutional investor (FII) outflows, and geopolitical tensions in West Asia weighed on sentiment.
At the interbank foreign exchange market, the rupee opened at 92.92 and soon breached the 93-mark for the first time before touching 93.08. The currency had already slumped 49 paise to close at an all-time low of 92.89 against the US dollar in the previous trading session on Wednesday. Markets were closed on Thursday on account of Gudhi Padwa.
Forex traders noted that sustained dollar demand and global uncertainties are keeping pressure on the domestic currency. “The rupee looks vulnerable, with the RBI the only one protecting it from further fall by selling dollars,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Foreign portfolio investors continued to pull out funds, adding to the downward pressure. On Thursday, FIIs were net sellers, offloading equities worth ₹7,558.19 crore as domestic benchmarks Sensex and Nifty hit a 21-month low before staging a rebound on Friday.
Global cues also influenced currency movement. The dollar index, which measures the US dollar against a basket of six major currencies, rose 0.17% to 100.25, while elevated crude oil prices added further strain on India’s import-dependent economy. Brent crude futures were trading at around USD 106.9 per barrel, though slightly lower by 1.64%.
On the domestic front, equity markets offered some support. The Sensex surged 960.67 points (1.29%) to close at 75,167.91, while the Nifty climbed 311.50 points (1.35%) to settle at 23,313.65, helping limit further downside in the rupee.
