The Indian rupee continued its freefall on Thursday, dropping 20 paise to a record low of 95.86 against the US dollar in early trade. The pressure on the rupee comes amid rising crude oil prices and a sustained outflow of foreign funds from the Indian markets.
At the interbank foreign exchange market, the rupee opened at 95.74 before slipping further to 95.86 against the US dollar, registering a fall of 20 paise from its previous close.
Meanwhile, crude oil remained elevated at $106 a barrel as US President Donald Trump is holding talks with Chinese President Xi Jinping, with the Iran war high on the agenda.
The rupee has declined 1.4 per cent this week and hit record lows in each trading session between Tuesday and Thursday.
In the previous session on Wednesday, the rupee had declined to its then-record low of 95.80 before recovering slightly to 95.66 against the dollar.
According to analysts, commodities like gold, fuel, and DAP for agriculture will carry a hefty price tag in the coming weeks before markets stabilise.
The geopolitical headlines from the US-China meeting and the Iran conflict are adding more pressure on the rupee as India imports fuel and other essentials at elevated prices from international markets.
“US President Donald Trump stated that he does not expect China’s help in resolving the Iran conflict, while peace negotiations between Washington and Tehran remain on hold as both sides continue to disagree on key conditions,” he added.
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