Rupee Falls to 94.82 Against US Dollar, Nears Record Low Amid Rising Crude Prices

The Indian rupee weakened further on Wednesday, slipping 14 paise to close at 94.82 against the US dollar, inching closer to its all-time low amid persistent global and domestic pressures.

At the interbank foreign exchange market, the rupee opened at 94.79 and fell to an intraday low of 94.86 before settling at 94.82. The currency had already declined sharply by 53 paise in the previous session.

Forex traders attributed the continued weakness to rising global crude prices, with Brent crude hovering above $114 per barrel. Higher oil prices are expected to significantly increase India’s import bill and fuel inflation concerns.

Market sentiment has also been impacted by geopolitical tensions in West Asia, which have raised fears of a broader conflict and increased volatility in global markets. Additionally, sustained selling by foreign institutional investors (FIIs) has added pressure on the rupee.

Investors are now closely watching the upcoming policy decision by the US Federal Reserve for further cues on global liquidity and interest rate direction.

Analysts say the rupee remains under pressure due to a lack of strong support levels and continued capital outflows. In the near term, the currency is expected to remain volatile, largely driven by crude oil prices and foreign investment trends.

Meanwhile, the dollar index, which tracks the strength of the US currency against a basket of major currencies, edged higher, adding to the rupee’s weakness.

Despite currency pressures, domestic equity markets showed resilience, with benchmark indices closing higher during the session.