Rupee hits record low of 94.05 against US dollar amid outflows, global tensions
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The Indian rupee fell to a record low of 94.05 against the US dollar on Wednesday, weighed down by heavy foreign fund outflows and ongoing geopolitical tensions in West Asia.
At the interbank foreign exchange market, the rupee opened at 93.94 and traded between 93.86 and 94.08 during the session before settling at its all-time low, down 29 paise from the previous close of 93.76.
Forex traders said the decline came despite supportive factors such as easing global crude oil prices, a weaker dollar index, and strong domestic equity markets.
According to market data, foreign institutional investors sold equities worth Rs 8,009.56 crore on a net basis on Tuesday, adding pressure on the currency.
Anil Kumar Bhansali of Finrex Treasury Advisors said the rupee remained under pressure due to month-end dollar demand even as broader market sentiment improved. He added that the Reserve Bank of India may act to stabilise the currency around the 94 level during the financial year, with an expected trading range between 93.25 and 94.25.
The dollar index, which measures the US currency against a basket of major peers, was down 0.17 percent at 99.26, while Brent crude prices fell 4.33 percent to $99.97 per barrel.
In the domestic equity market, the BSE Sensex rose 1,205 points to 75,273.45, and the Nifty 50 gained 394.05 points to close at 23,306.45.