Rupee Slides To Record Low Of 95.23 Against U.S. Dollar Amid Oil Price Surge

The Indian rupee weakened by 39 paise to settle at a record closing low of 95.23 against the U.S. dollar on Monday as elevated crude oil prices and foreign capital outflows continued to pressure the domestic currency.

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At the interbank foreign exchange market, the rupee opened at 94.95 against the U.S. dollar and later slipped further during the session before ending at 95.23 on a provisional basis. The domestic currency had closed at 94.84 in the previous trading session on Thursday. Currency and equity markets remained closed on Friday due to Maharashtra Day.

Crude Oil Prices Remain Elevated

Global crude oil prices remained firm amid continuing geopolitical tensions in the Middle East, increasing concerns around inflation and import costs for oil-dependent economies.

Brent crude futures traded near $109.65 per barrel during the session, remaining above the $100 mark. Rising oil prices are expected to increase India’s import bill as the country relies heavily on crude imports to meet domestic fuel demand.

The dollar index, which measures the strength of the U.S. dollar against a basket of major global currencies, was trading at 98.26 during the session.

Foreign Outflows Continue

Foreign institutional investors continued to remain net sellers in the Indian equity market. According to exchange data, foreign institutional investors sold equities worth ₹8,047.86 crore on Thursday.

Sustained foreign fund outflows and higher demand for dollars in the domestic market added further pressure on the rupee.

Domestic Markets End Higher

Despite weakness in the rupee, domestic equity benchmarks ended higher on Monday. The Sensex gained 355.90 points to close at 77,269.40, while the Nifty 50 advanced 121.75 points to settle at 24,119.30.

Investors also tracked developments related to state election results and global geopolitical events during the session.

Fiscal Concerns Remain In Focus

Finance Secretary V Vualnam said at the ICPP Growth Conference organised by Ashoka University that the coming quarters could remain challenging from a fiscal perspective. He stated that capital expenditure would continue to remain a priority despite fiscal pressures.

The rupee has remained under pressure in recent sessions as global crude oil prices, geopolitical developments and foreign capital movement continue to influence currency markets.