New Delhi: The Indian currency came under intense pressure on Friday as the rupee slipped to a new all-time low against the US Dollar, reflecting growing concerns over global economic uncertainty and geopolitical tensions.
In early trade, the rupee weakened by 33 paise to touch 94.29 against the dollar, breaching previous records. The decline follows a weak closing earlier in the week, as markets reacted to continued instability linked to the ongoing tensions involving Iran and the United States.
Currency traders attributed the fall to a combination of factors, including surging crude oil prices and a stronger dollar globally. Brent crude prices remained elevated, hovering above $100 per barrel, increasing import costs for oil-dependent economies like India.
The strengthening of the dollar index, which measures the greenback against a basket of major currencies, further weighed on the rupee. Analysts noted that global investors are moving towards safer assets amid uncertainty, boosting the dollar’s appeal.
Domestic financial markets also reflected the strain. Key indices, including the BSE Sensex and Nifty 50, witnessed sharp declines in morning trade, while continued outflows by foreign institutional investors added to the pressure on the local currency.
Market experts believe that unless there is a significant easing in geopolitical tensions or a correction in crude oil prices, the rupee may continue to remain volatile in the near term.
