New Delhi: The Indian rupee weakened further on Wednesday morning, touching a new lifetime low of 96.90 against the US dollar during early trading, as rising crude oil prices and continued strength in the American currency weighed heavily on investor sentiment.
Currency traders said concerns linked to ongoing tensions involving Iran and the United States contributed to higher global oil prices, adding pressure on emerging market currencies, including the rupee. Increased demand for the dollar in overseas markets also affected the domestic currency’s movement.
At the interbank foreign exchange market, the rupee opened weaker at 96.89 per dollar before slipping marginally to 96.90, marking a decline of 20 paise compared to the previous session’s close.
The latest fall follows Tuesday’s sharp decline, when the rupee dropped by 50 paise to settle at what was then a record low of 96.70 against the greenback. The currency has now weakened for eight straight trading sessions, reflecting sustained pressure in both domestic and global markets.
Market analysts pointed to continued foreign institutional investor outflows and weakness in Indian equities as additional factors dragging the rupee lower. Investors remained cautious amid uncertainty in global financial markets and concerns over energy prices.
The US dollar also maintained its upward momentum internationally. The dollar index, which tracks the American currency against a group of six major global currencies, remained firm at 99.262 during early trade.
Indian stock markets mirrored the cautious mood. The BSE Sensex declined by more than 500 points in opening trade to reach 74,667.51, while the NIFTY 50 fell 152.45 points to 23,475.80.
Financial experts believe market participants will closely watch global crude oil trends, foreign investment flows and geopolitical developments in the coming days, as these factors are expected to influence the rupee’s near-term direction.
