Mumbai: Forex traders said the currency faced pressure due to disruptions in crude oil imports linked to the West Asia crisis and the blockade of the Strait of Hormuz, which pushed up energy costs. The rupee has also emerged as the worst-performing Asian currency this year, losing over 6 per cent amid high crude prices, dollar strength and foreign fund outflows.
In intraday trade, the rupee opened at 95.74, touched a high of 95.61 and a record low of 95.96 before settling at 95.64, up 2 paise from the previous close. It had closed at 95.66 in the previous session.
Analysts said market sentiment was also influenced by reports of potential tax relief for foreign investors aimed at boosting capital inflows. However, concerns over US-Iran tensions and sustained foreign outflows continued to cap gains.
Experts expect near-term trading in the 95.25–96.10 range, with possible support from Reserve Bank of India intervention and policy measures.
The dollar index was steady at 98.51, while Brent crude rose 0.50 per cent to USD 106.16 per barrel.
Domestic equities ended strong, with the Sensex surging 789.74 points to 75,398.72 and the Nifty rising 277 points to 23,689.60. Foreign Institutional Investors turned net buyers, purchasing equities worth Rs 187.46 crore.
On the macroeconomic front, wholesale price inflation jumped to a 42-month high of 8.3 per cent in April, driven by rising energy costs amid West Asia tensions. Inflation stood at 3.88 per cent in March and 0.85 per cent a year earlier.
With PTI inputs