Mumbai: The rupee fell 32 paise to an all-time low of 95.20 against the US dollar in early trade on Thursday, April 30, pressured by Brent crude prices near USD 122 a barrel and a firm greenback.
Traders warned of further weakness, as elevated oil costs threaten India's import bill and West Asia tensions stoke investor nerves.
The US dollar gained after the Federal Reserve held rates steady, with safe-haven buying boosted by fresh US-Iran diplomatic friction.
The rupee opened at 95.01, then slipped to 95.20—a 32-paise drop from Wednesday's close of 94.88, which was already a record low down 20 paise.
Rising oil prices, now above USD 120 per barrel amid a US blockade of Iranian ports and Hormuz Strait restrictions, are the key drag, said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP.
The dollar index edged up 0.01% to 98.96, while Brent crude rose 3.16% to USD 121.76 in futures.
Domestic stocks slid, with the Sensex down 821.79 points to 76,674.57 and Nifty off 287.3 points to 23,890.35. Foreign institutional investors sold equities worth Rs 2,468.42 crore on Wednesday, also buying dollars amid rising bond yields at 7%.
Bhansali noted FPIs are offloading Indian equities and debt while accumulating dollars.
(Inputs from PTI)