Rupee Crashes To 96.83, Hits Fresh Lifetime Low Against US Dollar

The Indian rupee continued its downward spiral on Wednesday, slipping to a fresh lifetime low and extending its losing streak to the ninth consecutive trading session . The currency fell by 13 paise to close at 96.83 (provisional) against the US dollar, weighed down by persistent global uncertainties and strong dollar demand.

In the interbank foreign exchange market , the rupee opened weaker at 96.89 and briefly touched an intraday low of 96.95 before recovering slightly to 96.65 . However, it ultimately settled at 96.83 , marking another record low after a sharp fall of 50 paise in the previous session.

Market experts attributed the pressure on the rupee to a combination of global and domestic factors. A strong US dollar , rising US Treasury yields , and concerns over sustained inflation have triggered cautious sentiment across global financial markets. The surge in US bond yields to their highest levels in years has also reduced expectations of near term rate cuts, further strengthening the dollar and weakening emerging market currencies.

Crude oil prices added to the strain, as elevated global oil benchmarks driven by geopolitical tensions in West Asia continue to fuel inflation concerns for import dependent economies like India. The persistent rise in oil has widened trade deficit worries and increased pressure on the currency.

According to market analysts, the rupee is expected to remain under pressure in the near term, with trading likely to stay within a range of 96.50 to 97.10 against the dollar , depending on global risk sentiment and foreign fund flows.

Foreign Institutional Investors (FIIs) turned net sellers after three consecutive sessions of buying, offloading equities worth Rs 2,457.49 crore , adding further weight to market sentiment.

Despite the currency weakness, domestic equity markets showed some resilience. The Sensex gained 117.54 points to close at 75,318.39 , while the Nifty rose by 41 points to settle at 23,659 .

The dollar index , which measures the US currency against a basket of six major currencies, edged higher, reinforcing global dollar strength. Meanwhile, Brent crude prices eased slightly in futures trade but remained at elevated levels, continuing to pose inflationary risks.

The rupee’s sustained slide is emerging as a key concern for policymakers, importers, and investors , reflecting broader global financial tightening and persistent external pressures.