The Indian rupee weakened to an all-time low of 92.63 against the US dollar on Wednesday, pressured by sustained foreign fund outflows, firm global dollar strength, and rising concerns over import costs amid geopolitical tensions.
The currency opened at 92.42 in the interbank foreign exchange market and traded within a limited range before breaching the 92.50 level, triggering fresh selling pressure and pushing it to a record low during the session. It had settled at 92.37 in the previous trading session.
Market analysts attributed the sharp decline to a combination of external and domestic factors, including reduced dollar liquidity ahead of a bank holiday and increased demand for the US currency. Dilip Parmar of HDFC Securities said the breach of key levels intensified downward pressure on the rupee, even as broader market sentiment remained relatively stable.
Despite a backdrop of easing crude prices and risk appetite in global markets, the rupee faced strong dollar demand from importers. Analysts noted that year-end requirements and concerns over a widening trade deficit have further supported demand for the greenback. The currency is expected to encounter resistance near the 92.85 level, with support seen around 92.40 in the near term.
The ongoing conflict in West Asia has added to the pressure, with the rupee declining by over 1 per cent in recent sessions. Disruptions in key shipping routes, particularly through the Strait of Hormuz, have raised concerns about sustained high import costs for India, a major oil importer.
Jateen Trivedi of LKP Securities said the rupee remains under strain due to an expanding import bill driven by elevated crude oil prices. He noted that continued uncertainty in global energy markets is likely to keep the currency under pressure in the near term, with an expected trading range between 92.25 and 92.95 against the dollar.
The dollar index, which measures the US currency against a basket of major global currencies, edged higher to 99.62, reflecting ongoing strength in the greenback. Meanwhile, Brent crude prices hovered around $103.2 per barrel in futures trade, remaining elevated despite slight intraday easing.
In the domestic equity market, benchmark indices recorded gains. The Sensex rose by 719.77 points to 76,790.61, while the Nifty advanced 215.75 points to 23,796.90, indicating resilience in equities despite currency volatility.4
Foreign institutional investors continued to remain net sellers, offloading equities worth Rs 4,741.22 crore in the previous session, adding further pressure on the rupee. Persistent capital outflows have been a key factor contributing to the currency’s weakness in recent weeks.
In the commodities segment, precious metals saw a decline, with gold falling by 0.54 per cent to Rs 1,55,142 and silver dropping 1.42 per cent to Rs 2,49,501.
The rupee’s slide highlights the combined impact of global uncertainties, capital outflows, and rising import costs on India’s external position. With geopolitical tensions and energy market volatility continuing, currency movements are expected to remain sensitive to shifts in global and domestic economic indicators.
