The Indian rupee weakened sharply on Friday, dropping 74 paise to touch a new record low of 94.70 against the US dollar in intra-day trading. The decline comes amid rising global crude oil prices and a firm US dollar, with ongoing tensions in West Asia showing no signs of resolution.
The currency opened at 94.18 and continued to fall through the session, slipping past the 94.50 level before hitting its lowest-ever mark.
Market participants say the rupee is under pressure from multiple fronts. Strong demand for dollars from oil-importing companies, coupled with continued foreign investor outflows from Indian equities, has weighed heavily on the local currency. Exporters, meanwhile, are delaying conversions in anticipation of more favorable rates, further tightening dollar supply.
The weakness in the currency also coincides with a downturn in domestic stock markets, reflecting cautious investor sentiment.
In the previous session on Wednesday, the rupee had already fallen to 93.96, which was its closing record low at the time. Financial markets remained shut on Thursday due to Ram Navami.
Experts note that sustained demand for the US dollar—especially from importers—continues to keep the rupee under pressure.
Globally, the US dollar remains firm, with the dollar index edging higher, indicating strength against major currencies. At the same time, Brent crude prices climbed significantly before easing slightly, hovering around $107 per barrel. Elevated oil prices are particularly impactful for India, which depends heavily on imports to meet its energy needs.
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