The Indian rupee slipped 12 paise to a fresh record low of 92.37 against the US dollar in early trade on Friday, weighed down by persistent pressure from surging global crude oil prices and the deepening West Asia crisis.
Strengthening dollar index, sustained foreign capital outflows, and weak domestic investor sentiment further exacerbated the rupee’s decline.
The rupee opened 12 paise lower than its previous close against the US dollar on Thursday.
Crude oil prices have remained elevated due to the ongoing closure and heightened tensions in the Strait of Hormuz, which handles 20 per cent—or one-fifth—of global oil supply.
“The dollar index also rose; European and Asian currencies all fell against the dollar,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
He added that the rupee has remained vulnerable and, in the absence of RBI intervention, could have reached 93.00 levels.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.04 per cent higher at 99.77.
Brent crude, the global oil benchmark, rose 4.99 per cent to USD 96.57 per barrel in futures trade.
On the domestic equity front, the Sensex plunged 560.06 points or 0.74 per cent, to 75,474.36, while the Nifty tanked 184.45 points or 0.78 per cent, to 23,454.70 in early trade.
According to exchange data, foreign institutional investors sold equities worth Rs 7,049.87 crore on a net basis on Thursday.
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