Mumbai: The rupee depreciated 14 paise to close near its all-time low at 94.82 (provisional) against the US dollar on Wednesday, weighed down by rising crude oil prices, sustained foreign fund outflows, and global uncertainty.
Forex traders said Brent crude hovering around USD 114–115 per barrel is expected to significantly raise India’s import bill, while ongoing tensions in West Asia and fears of a wider conflict have heightened investor caution. Market participants also awaited signals from the upcoming US Federal Reserve policy decision.
At the interbank foreign exchange market, the rupee opened at 94.79 against the dollar. It weakened further during the session to touch an intraday low of 94.86 before settling at 94.82 (provisional), marking a 14 paise decline from its previous close.
On Tuesday, the rupee had already dropped sharply by 53 paise to 94.68 against the US dollar. The currency’s all-time low closing level of 94.85 was recorded on March 27 this year.
Traders noted continued pressure from heavy foreign institutional investor (FII) selling, alongside elevated crude prices, which have been sustaining downside pressure on the currency. Analysts said higher oil prices are also increasing inflation risks and limiting any meaningful recovery.
“The trend remains weak, with the currency consistently facing selling pressure on rebounds, indicating a lack of strong support at higher levels. In the near term, 94.40 is likely to act as resistance, while 95.25 remains the next key support, with the rupee expected to stay volatile and driven by crude and capital flows,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Meanwhile, the dollar index, which measures the US currency against six major peers, rose 0.08 per cent to 98.72. Brent crude, the global oil benchmark, surged 3.13 per cent to USD 114.74 per barrel in futures trade.
In a related development, the United Arab Emirates said on Tuesday it will leave OPEC effective May 1, marking a significant development for the global oil cartel.
On the domestic equity front, markets closed higher, with the Sensex rising 609.45 points to 77,496.36 and the Nifty gaining 181.95 points to 24,177.65.
Foreign Institutional Investors sold equities worth Rs 2,103.74 crore on Tuesday, according to exchange data.
Separately, India’s industrial production growth slowed to a five-month low of 4.1 per cent in March, impacted by weaker manufacturing performance and near-flat expansion in the power sector amid the West Asia crisis, official data showed. The Index of Industrial Production (IIP) had expanded 3.9 per cent in March 2025, the statement added.
With PTI inputs