The Indian rupee slipped below the crucial 96-mark for the first time ever during intraday trade on Friday, weighed down by soaring crude oil prices, a strengthening US dollar and persistent foreign fund outflows.
At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar before sliding sharply to an all-time low of 96.14, marking a fall of 50 paise from the previous close. The domestic currency had earlier closed at 95.64 on Thursday after briefly touching a record low of 95.96.
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Forex traders said the USD/INR pair remains under intense pressure due to weak foreign direct investment inflows, global uncertainties and continued outflow of foreign capital. Analysts also pointed to relatively high market valuations and lack of major AI-driven investment opportunities as factors hurting capital inflows into India.
The dollar index, which measures the greenback’s strength against six major global currencies, rose 0.47 per cent to 99.28. Meanwhile, Brent crude prices surged 3.20 per cent to USD 109.20 per barrel, increasing concerns over India’s import bill and inflation outlook.
Global Uncertainty Adds Pressure on Markets
Domestic equity markets also traded lower amid the uncertainty. The Sensex fell 130.74 points to 75,267.98, while the Nifty slipped 17.60 points to 23,672.
According to market experts, hawkish comments from US policymakers, stronger-than-expected US economic data and disappointing outcomes from talks between US President Donald Trump and Chinese President Xi Jinping further weakened Asian currencies.
India’s trade data also reflected pressure on the economy. Exports in April rose 13.78 per cent to USD 43.56 billion, while imports increased 10 per cent to USD 71.94 billion, pushing the trade deficit to USD 28.38 billion.
