Rupee hits record low to 93.94 as global tensions and market fall weigh in
The Indian rupee has plunged to an all-time low of 93.94 against the US dollar in early Monday trade, weakening by 41 paise in a single session. The slide comes just days after the currency breached the 93 mark for the first time , when it had already fallen sharply by 64 paise to close at 93.53 , highlighting the speed and intensity of the current decline.
A key trigger is the spike in global crude oil prices amid ongoing tensions in West Asia. Brent crude is hovering around USD 112.90 per barrel , significantly raising India’s import bill. Market experts point out that India is now paying nearly USD 50 more per barrel for crude imports from the Gulf, sharply increasing dollar demand and putting pressure on the rupee.
The strength of the US dollar is adding to the strain. The dollar index , which measures the greenback against major currencies, is currently around 99.66 , reflecting continued global demand for the currency as a safe haven .
On the domestic front, foreign fund outflows have worsened the situation. Foreign institutional investors sold equities worth Rs 5,518 crore , intensifying pressure on the rupee.
India’s external position is also under strain. The country’s foreign exchange reserves fell by USD 7.05 billion to USD 709.76 billion , limiting the buffer available to defend the currency. A persistent trade deficit continues to keep demand for dollars elevated.
The impact of the falling rupee is immediate. Costlier imports could push up fuel prices and inflation , making everyday goods more expensive. Sectors with foreign debt may face higher repayment burdens, while overseas travel and education also become costlier.
The Reserve Bank of India has been actively intervening by selling dollars to curb volatility, while allowing gradual adjustment. It is also managing liquidity conditions and closely tracking inflation risks.
If crude prices remain high and outflows continue, the rupee may test the 94-95 range . However, timely intervention and easing global conditions could help stabilize the currency in the coming weeks.