Currency crisis and equity sell‑off: INR falls to record low of ₹94.70, markets in red

The Indian rupee weakened sharply to a record low of ₹94.70 against the US dollar on Friday, marking its steepest decline in recent sessions. The drop came amid rising global crude prices, a firm greenback, and persistent geopolitical tensions in West Asia, putting additional pressure on domestic markets.

At the interbank foreign exchange, the rupee opened weak and continued sliding throughout the session, reflecting strong dollar demand from importers and cautious holding back of export inflows. Analysts said elevated oil prices above USD 100 per barrel and a strengthening dollar index added further pressure on the local unit.

Domestic equity markets also faced heavy selling. The BSE Sensex plunged nearly 1,700 points to close at 73,583.22 , down around 2.25 per cent , while the Nifty50 slipped to 22,819.60 , a drop of over 2 per cent amid broad-based declines.

The sharp downturn erased a substantial amount of investor wealth, with losses hitting the financial, banking, and commodity sectors as foreign institutional investors sustained net outflows. Market sentiment remained weak throughout the session, with geopolitical uncertainty and inflation concerns dominating investor outlooks.

Among individual stocks, defensive names showed relative resilience, but gains were limited as overall risk appetite waned. Experts said the combination of a weak rupee, high crude prices, capital outflows, and ongoing global tensions contributed to sustained market volatility, with limited signs of immediate recovery.