Mumbai: The Indian rupee slipped to an all-time low against the US dollar on Friday, crossing the 96 mark for the first time during intraday trade as global economic concerns and rising crude oil prices continued to weigh heavily on the domestic currency. According to a report by Moneycontrol, the rupee later ended the session at a record closing low of 95.97 against the dollar, down 21 paise from the previous close.
Market experts attributed the sharp fall to elevated oil prices, sustained strength in the US dollar and hawkish signals from the US Federal Reserve. Analysts noted that stronger-than-expected US economic data, including retail sales and labour market figures, reduced expectations of aggressive interest rate cuts by the Federal Reserve, further boosting demand for the dollar globally.
The report stated that the rupee has emerged as one of Asia’s weakest-performing currencies in recent weeks, mainly because India’s import bill has increased significantly due to surging energy prices. Rising geopolitical tensions in West Asia have also intensified concerns over global oil supply disruptions, adding further pressure on oil-importing economies like India.
Santosh Meena, Head of Research at Swastika Investmart, told Moneycontrol that growing uncertainty in global markets and continuous foreign fund outflows have contributed to the rupee’s decline. He added that higher crude oil prices and strong US interest rates continue to affect emerging market currencies, including the Indian rupee.
Meanwhile, Indian equity benchmarks also witnessed volatility during the trading session. The Sensex erased early gains and slipped into negative territory as investor sentiment weakened alongside the rupee’s record fall.
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