Indian Rupee Hits Record Low: 92.44 Against USD

Key Takeaways

• The Indian Rupee reached a new record low of 92.44 against the US Dollar during intra-day trading on Friday, March 13.
• Rising global oil prices and increasing tensions in West Asia contributed to the decline, alongside a stronger dollar and outflows of foreign funds.
• The BSE Sensex fell by 917.69 points to close at 75,116.73, while the Nifty 50 dropped by 308.40 points to finish at 23,330.75.

Market Analysis

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• The US Dollar Index increased by 0.04% to reach 99.77, indicating widespread strength in the US dollar.
• Brent Crude surged nearly 5% to $96.57 per barrel, raising concerns for oil-importing nations like India.
• Foreign institutional investors continued to withdraw funds from Indian markets, contributing to pressures on the currency.
• Overseas investors sold equities totaling ₹7,049.87 crore on a net basis on Thursday.

Inflation Concerns

• India's retail inflation increased to 3.21% in February, up from 2.74% in January, primarily due to rising food prices.

Expert Insights

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• Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, believes that FII selling and a widening trade deficit may depreciate the rupee further towards 93.
• Amit Pabari, MD at CR Forex Advisors, expects the 91.40–91.50 zone to act as strong support for USD/INR in the near term.
• Tushar Badjate, Director at Badjate Stock shares Pvt Ltd, does not rule out the possibility of the rupee hitting 100 against the US dollar if macroeconomic trends persist.