Indian Rupee Hits Record Low of 96.14 Versus US Dollar

Rupee Hits Record Low Amid Rising Crude Oil Prices and Hawkish US Policymakers

The Indian rupee breached the key 96-per-dollar level in intraday trade on Friday, weighed down by persistently high crude oil prices, continued strength in the US dollar, and hawkish signals from American policymakers. At the interbank foreign exchange, the rupee opened at 95.86, then lost ground and fell to a record low of 96.14 in intraday trade, registering a fall of 50 paise from its previous close.

The rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the US dollar on Thursday. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.28, higher by 0.47 per cent.

The rupee has emerged as Asia's weakest-performing currency in recent weeks as India sees rising import bills due to soaring energy costs. Meanwhile, Indian benchmark indices gave up early gains on Friday, with the Sensex slipping over 200 points from the day's high to trade in negative territory at 75,175.

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On Friday, the Centre further added to inflation concerns by raising petrol and diesel prices by Rs 3 per litre with immediate effect, a move aimed at curbing fuel demand amid supply disruptions linked to the Iran conflict. Brent crude remained above $109 per barrel, while the dollar index climbed for a fourth straight session as strong US macroeconomic data reduced expectations of aggressive rate cuts by the US Federal Reserve.

Market sentiment also remained fragile after the summit between US President Donald Trump and Chinese President Xi Jinping failed to deliver progress on key geopolitical flashpoints, particularly on the US-Iran front. Analysts said continued disagreements over Taiwan and China's energy ties with Iran added another layer of uncertainty for global markets, supporting safe-haven demand for the US dollar.

New Delhi has stepped up economic management measures amid the external pressure. After tightening gold imports under the Advance Authorisation scheme on Thursday by capping duty-free imports at 100 kilograms, the government on Friday also moved to rein in fuel consumption through higher retail prices. The latest steps are being seen as part of a broader policy response as India navigates rising commodity prices, geopolitical volatility, and pressure on the current account.

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On the equity front, benchmark indices showed resilience despite currency pressure, with the BSE Sensex rising over 239 points in early trade and the Nifty 50 trading higher. Foreign institutional investors also turned net buyers in the previous session, offering some support to domestic sentiment.