Rupee Hits All-Time Low, Plunging 95.23 Against US Dollar

Indian Rupee Hits Record Low Amid Ongoing Global Market Volatility

The Indian rupee has fallen to an all-time low of 95.23 (provisional) against the US dollar on Monday, as ongoing Middle East tensions continue to cause volatility in global markets. The rupee's decline is being exacerbated by high oil prices, which are maintaining pressure on oil-importing economies like India.

At the interbank foreign exchange market, the rupee opened at 94.95 against the US dollar before losing ground and finally settling at 95.23 (provisional) for the day. This represents a fall of 39 paise from its previous close. On Thursday, the rupee had settled at 94.84 against the American currency.

The ongoing surge in oil prices, combined with foreign fund outflows, is putting a visible strain on India's trade balance and broader economy. Persistent dollar demand is expected to keep the pressure on the rupee in the short term, driving the USD/INR higher toward the 95.35 and 95.70 levels.

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The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.26, up 0.11 per cent. Brent crude, the global oil benchmark, was trading higher by 1.37 per cent at USD 109.65 per barrel in futures trade.

Investors' focus was on counting of votes for the West Bengal state elections, with a BJP victory likely to be positive for domestic assets. However, the impact is likely to be short-lived as global geopolitics will continue to be the driving factor given direct impact on supply chains and industry.

On the domestic equity market front, the Sensex rallied 355.90 points to settle at 77,269.40, while the Nifty climbed 121.75 points to 24,119.30. Foreign Institutional Investors offloaded equities worth ₹8,047.86 crore on Thursday, according to exchange data.

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Expenditure Secretary V Vualnam has expressed concerns about the upcoming few quarters and the coming year, stating that there will be "lot of stress points". However, he emphasized the importance of preserving capital expenditure, which would be a priority item for the government.