New Delhi: The Indian rupee extended its decline for a fifth consecutive trading session on Friday, slipping 22 paise to close at 94.23 against the US dollar, weighed down by soaring crude oil prices, a stronger greenback and persistent geopolitical tensions in West Asia.
Currency markets remained under pressure despite an existing ceasefire between the United States and Iran, as uncertainty over shipping movement through the Strait of Hormuz continued to fuel concerns over global energy supplies. The instability also triggered heavy selling in domestic equities and added to foreign fund outflows, analysts said.
At the interbank foreign exchange market, the rupee opened at 94.25 and traded in a narrow band during the day, touching an intraday high of 94.18 and a low of 94.31 before settling lower.
The domestic currency had already closed 23 paise weaker at 94.01 in the previous session, marking its fourth straight day of losses. Over the past five trading sessions, the rupee has weakened by more than one per cent from its April 17 close of 92.91.
Market experts attributed the continued fall to heightened risk aversion after tensions around the Strait of Hormuz kept oil markets volatile. Rising crude prices and a firm dollar further added pressure on the Indian currency.
Brent crude jumped over two per cent to trade at 107.39 dollars a barrel in futures trade, while the dollar index, which tracks the US currency against major global peers, edged higher to 98.62.
The uncertainty spilled into equity markets as well, with the Sensex plunging 982.71 points to settle at 76,681.29, while the Nifty dropped 275.10 points to end at 23,897.95.
Foreign institutional investors remained net sellers, offloading equities worth Rs 3,254.71 crore in the previous session, exchange data showed.
Analysts said the rupee may continue to remain under pressure in the near term as geopolitical tensions, crude oil movements and foreign capital flows are likely to dictate market direction.
