Rupee Falls 39 Paise, Moves Closer to 94 as Markets Turn Risk Averse

The Indian rupee extended its losing streak for a third straight session on Wednesday, slipping closer to the 94 per US dollar mark amid rising global uncertainty, firm crude oil prices, and sustained foreign fund outflows.

The domestic currency weakened by 39 paise to settle at 93.83 (provisional) against the US dollar. During the day, it touched an intraday low of 93.87 , nearing its earlier weakest levels seen in March.

The rupee opened at 93.69 but remained under pressure through the session as sentiment turned cautious over US Iran peace talks . Rising uncertainty over developments in West Asia added to market nervousness and pushed crude oil prices higher , weighing on the currency.

Brent crude climbed over 1 per cent to nearly USD 100 per barrel after fresh tensions in the Strait of Hormuz, a key global oil shipping route. Traders said the geopolitical flare up has kept energy markets volatile, directly impacting import dependent economies like India.

Domestic equity markets also added to pressure on the rupee. The Sensex fell 756.84 points to close at 78,516.49, while the Nifty dropped 198.50 points to settle at 24,378.10. Persistent selling by foreign institutional investors further weakened sentiment, with FIIs offloading equities worth about ₹1,918.99 crore in the previous session.

In currency markets, analysts said the rupee is likely to remain under negative bias in the near term. However, a slightly softer US dollar may offer limited support and prevent a sharper fall.

Experts expect the rupee to trade in a range of 93.60 to 94.20 per dollar , with global crude movements and geopolitical developments continuing to guide direction.

Overall, elevated oil prices, foreign fund outflows, and global tensions are likely to keep the rupee on a cautious and vulnerable footing in the coming sessions.