The rupee on Wednesday fell to a fresh record low of 92.63 against the US dollar, pressured by a firm greenback and continued foreign fund outflows.
At the interbank forex market, it opened at 92.42, traded in a narrow band, and slipped to its all-time low during the session. The currency had closed at 92.37 on Tuesday.
“The rupee declined to a record low after breaching the 92.50 level, triggering selling pressure amid thin dollar liquidity ahead of a bank holiday,” said Dilip Parmar of HDFC Securities. He added that despite strong risk appetite and softer crude prices, persistent dollar demand from importers and concerns over a widening trade deficit kept pressure on the currency. He sees resistance at 92.85 and support near 92.40.
Amid the ongoing West Asia conflict, the rupee has weakened by over 1 per cent.
Echoing similar views, Jateen Trivedi of LKP Securities said the currency remains under pressure due to a rising import bill. He noted that elevated crude prices and shipment disruptions via the Strait of Hormuz are adding to concerns. The rupee is expected to trade in the 92.25–92.95 range in the near term.
Meanwhile, the dollar index was slightly higher at 99.62, while Brent crude traded near $103.2 per barrel.
Domestic equities were higher, with the Sensex up 719.77 points at 76,790.61 and the Nifty gaining 215.75 points to 23,796.90. FIIs remained net sellers, offloading Rs 4,741.22 crore worth of equities on Tuesday.
In commodities, gold fell 0.54 per cent to Rs 1,55,142 and silver declined 1.42 per cent to Rs 2,49,501.