Rupee Falls Past 96 Against Dollar To Hit Record Low

The Indian rupee slipped past the 96-per-dollar mark on Friday to hit a fresh record low against the US dollar amid mounting global economic pressures.

The local currency was trading at 96.14 against the greenback, extending losses triggered by rising crude oil prices, elevated US bond yields and a stronger dollar amid geopolitical tensions linked to the Iran conflict.

Market experts said the rupee has emerged as one of the weakest-performing Asian currencies in recent weeks as investors continue to reassess risks in emerging markets.

According to Harshal Dasani, Business Head at INVAsset PMS, the rupee’s fall reflects a repricing of India’s macroeconomic risk premium due to multiple global pressures.

He said firm crude oil prices, weaker foreign inflows, rising US yields and dollar strength have increased pressure on the Indian currency. Dasani warned that persistent rupee weakness could fuel imported inflation, impact corporate margins and weigh on market sentiment.

Analysts noted that while export-oriented sectors may benefit from currency depreciation, businesses dependent on oil imports, logistics and consumer spending could face margin pressure if the rupee remains weak for an extended period.

Banking stocks may also witness treasury-related volatility, though stronger lenders with stable deposits are expected to remain relatively resilient.

Experts believe the Reserve Bank of India may intervene to reduce volatility, but global crude prices and continued dollar strength could keep the rupee under pressure in the near term.