Rupee hits record low amid crisis

Metro India News | mumbai

The Indian rupee dropped 35 paise to an all-time low of 93.88 (provisional) against the US dollar on Tuesday, hit by a strong greenback, rising crude prices, and continued foreign fund outflows.

Forex traders said uncertainty over the West Asia crisis and persistent foreign portfolio investment (FPI) withdrawals weighed on the currency. The rupee opened at 93.66 and remained volatile through the session, eventually closing at 93.88, down from Monday’s 93.53. On Monday, it briefly breached the 94 mark for the first time before ending slightly lower.

Analysts noted that emerging market currencies, including the rupee, are under pressure due to the dollar’s strength. “Persistent FPI outflows continue to pressure the INR. The rupee has weakened around 4.5 percent this month. For Wednesday, it is expected to trade in a range of 93.65 to 94.25,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Global geopolitical developments also added to market volatility. The US claimed it was in talks with an Iranian leader, suggesting Iran was open to negotiations to end hostilities, while also extending the deadline for reopening the Strait of Hormuz by five days, warning of potential attacks on power plants. Iran denied the claims, keeping tensions high and pushing crude oil prices upward.

The dollar index, measuring the greenback against six major currencies, rose 0.23 percent to 99.18. Brent crude futures traded at USD 101.4 per barrel, reflecting supply concerns.