MUMBAI, India — The Indian rupee weakened to a record low of 92.63 against the U.S. dollar on Wednesday, pressured by a stronger greenback, persistent foreign fund outflows, and rising import costs tied to global geopolitical tensions.
The currency opened at 92.42 in interbank trading and moved within a narrow range before slipping to its all-time low during the session. It had closed at 92.37 on Tuesday.
Market analysts said the breach of key levels intensified selling pressure. “The Indian rupee slipped to a fresh record low as a break below the 92.50 level triggered selling pressure, exacerbated by thin dollar liquidity ahead of a bank holiday,” said Dilip Parmar, Senior Research Analyst at HDFC Securities.
Despite supportive factors such as steady risk appetite and softer crude prices earlier in the week, the rupee faced sustained demand for dollars from importers. “With geopolitical tensions stoking fears of a wider trade deficit, year-end demand remains robust. We see USD/INR facing resistance at 92.85, with support at 92.40,” Parmar added.
The rupee has now weakened by more than 1 percent amid the ongoing conflict in West Asia, which has heightened concerns over global trade flows and energy supplies.
Analysts pointed to rising import costs, particularly for crude oil, as a key factor weighing on the currency. “The rupee traded sharply weaker at around 92.60, marking fresh all-time lows, as persistent pressure from a rising import bill continues to weigh on the currency. Elevated crude oil prices, coupled with shipment disruptions through the Strait of Hormuz, are increasing concerns over sustained higher import costs for India,” said Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities.
“The macro backdrop remains unfavorable, with crude likely to stay elevated, keeping the rupee under pressure. In the near term, the rupee is expected to trade in the range of 92.25–92.95 against the U.S. dollar,” Trivedi added.
Meanwhile, the dollar index, which measures the U.S. currency against a basket of six major currencies, edged higher to 99.62.
Global oil benchmark Brent crude was trading slightly lower at around $103.2 per barrel in futures markets.
Indian equity markets moved higher despite currency weakness. The benchmark Sensex rose 719.77 points to 76,790.61, while the Nifty gained 215.75 points to 23,796.90.
Foreign institutional investors remained net sellers, offloading equities worth Rs 4,741.22 crore on Tuesday, according to exchange data.
In commodities trading, precious metals declined, with gold falling 0.54 percent to Rs 1,55,142 and silver dropping 1.42 percent to Rs 2,49,501. (Source: IANS)
