Mumbai: The Indian rupee fell sharply on Friday, dropping 82 paise to close at a record low of 93.71 against the US dollar. This is the weakest level ever for the currency. It also crossed the 93 mark for the first time during the day.
Weak Opening And Continued Fall
The rupee opened at 92.92 and quickly weakened further. It continued to lose value throughout the trading session before settling at 93.71. Earlier this week, the rupee had already hit a previous low of 92.89, showing a continuous downward trend.
Oil Prices Add Major Pressure
One of the biggest reasons for the fall is the sharp rise in global crude oil prices. Brent crude crossed USD 110 per barrel amid rising tensions in West Asia. Since India imports a large amount of oil, higher prices increase demand for dollars and weaken the rupee.
Foreign Investors Pull Out Funds
Foreign institutional investors (FIIs) have been selling Indian equities heavily. They sold shares worth Rs 7,558 crore recently. When investors pull money out, they convert it into dollars, which increases pressure on the rupee.
Global Uncertainty Hurts Sentiment
Rising geopolitical tensions have made investors cautious. Many are moving towards safer assets like the US dollar. This shift in sentiment has also contributed to the rupee’s fall.
Central Banks Maintain Rates
Major central banks, including the US Federal Reserve, European Central Bank, Bank of England, and Bank of Japan, have kept interest rates unchanged. However, concerns about inflation remain, which is keeping global markets uncertain.
Outlook Remains Weak
Experts believe the rupee may continue to remain under pressure. It is expected to trade between 93.20 and 93.80 in the near term. Rising oil prices and global tensions are likely to keep the currency weak.
Markets Show Mixed Signals
While the rupee weakened, Indian stock markets ended higher. The Sensex rose 325.72 points to 74,532.96, and the Nifty gained 112.35 points to 23,114.50, showing mixed trends in financial markets.
