New Delhi: The Indian rupee weakened sharply on Friday morning, crossing the 93-per-dollar threshold for the first time in history. The local currency dropped by 19 paise to touch an all-time intra-day low of 93.08 against the US dollar during early trading hours.
The decline comes as the US dollar continued to gain strength globally, supported by persistent foreign fund outflows and heightened geopolitical tensions in West Asia. Currency traders noted that these external pressures have kept the rupee under sustained stress in recent sessions.
At the interbank foreign exchange market, the rupee opened at 92.92 before slipping further to breach the 93 level. This follows its previous record close of 92.89 on Wednesday, when it had already registered a steep fall of 49 paise. Markets remained shut on Thursday due to the festival of Gudhi Padwa.
Analysts suggest that the currency remains vulnerable, with limited support preventing a steeper fall. According to market experts, the Reserve Bank of India has been intervening intermittently by selling dollars to stabilize the rupee.
“The rupee is under pressure, and intervention from the central bank appears to be the primary factor preventing further depreciation,” said treasury expert Anil Kumar Bhansali. He also pointed out that foreign portfolio investors have continued to pull out funds from Indian equities, contributing to the currency’s weakness.
Global crude oil prices have added another layer of strain. Elevated energy costs typically widen India’s trade deficit, increasing demand for dollars. However, a slight dip in oil prices provided marginal relief, with Brent crude trading lower in early deals.
Meanwhile, the US Dollar Index, which measures the dollar’s performance against major global currencies, edged higher, reflecting continued strength in the greenback.
On the domestic front, equity markets showed signs of recovery after the previous session’s decline. The BSE Sensex rose significantly, while the Nifty 50 also posted solid gains in early trade. Despite this rebound, foreign institutional investors remained net sellers, offloading equities worth over ₹7,500 crore in the previous session.
Market participants will closely monitor global cues, oil price movements, and capital flows in the coming days, as these factors are expected to play a key role in determining the rupee’s trajectory.
