Rupee Falls 39 Paise To Close At All-Time Low Of 95.23 Against US Dollar

The Indian rupee slipped into uncharted territory on Monday, closing at its weakest-ever level against the US dollar, reflecting deepening global economic anxieties and mounting domestic pressures.

The currency fell by 39 paise to settle at 95.23 , marking a historic low in the interbank foreign exchange market. It had opened at 94.95 but steadily weakened through the session, breaching previous levels as global cues turned increasingly unfavourable.

At the heart of this decline lies a mix of geopolitical tensions in the Middle East , surging crude oil prices , and persistent foreign capital outflows . Brent crude, hovering close to USD 110 per barrel , continues to exert pressure on oil-dependent economies like India, widening trade deficits and fuelling inflation concerns .

Market experts point out that the strengthening US dollar has further compounded the problem. The dollar index edged higher, indicating renewed global demand for the American currency, often seen as a safe haven during uncertain times. This has intensified pressure on emerging market currencies, including the rupee.

According to analysts, foreign institutional investor (FII) outflows , which recently crossed ₹8,000 crore , have weakened investor confidence. The outflow of capital reduces dollar inflows into the domestic market, thereby pushing the rupee lower.

Adding to the concerns, experts warn that the near-term outlook remains challenging. With global oil prices staying elevated and geopolitical risks unresolved , the rupee could face continued depreciation, with projections hinting at further downside levels.

Despite the currency’s fall, domestic equity markets showed resilience. The Sensex rose over 350 points , while the Nifty gained more than 120 points , indicating selective investor optimism. However, economists caution that this optimism may be short-lived if global pressures intensify.

Government officials have also acknowledged potential economic strain ahead, pointing to fiscal stress in the coming quarters , even as capital expenditure remains a priority.

For now, the rupee’s record fall serves as a stark reminder that global shocks can quickly ripple through domestic markets , testing the resilience of even large economies like India.