The rupee weakened further in early trade on Friday, slipping 19 paise to hit an all-time intra-day low of 93.08 against the US dollar, as sustained foreign fund outflows and a stronger greenback weighed on the currency.
At the interbank foreign exchange market, the rupee opened at 92.92 before breaching the 93 level for the first time to trade at 93.08. The fall comes after the currency had already closed at a record low of 92.89 on Wednesday. Forex markets remained shut on Thursday on account of Gudhi Padwa.
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Dollar strength, oil prices add pressure
Traders said the rupee remained under pressure due to continued foreign institutional investor (FII) outflows and elevated crude oil prices, both of which have increased demand for the US dollar.
“The rupee looks vulnerable with the RBI the only one protecting it from further fall by selling dollars,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. He added that foreign portfolio investors (FPIs) were net sellers even as benchmark indices Sensex and Nifty had fallen to a 21-month low in the previous session.
The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.17 per cent at 100.25. Brent crude, the global oil benchmark, was trading 1.64 per cent lower at USD 106.9 per barrel in futures trade, though prices remain elevated overall.
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Equities rebound offers limited support
On the domestic equity front, markets opened on a positive note after the previous session’s sharp fall. The Sensex rose 960.67 points to 75,167.91, while the Nifty gained 311.50 points to 23,313.65.
However, analysts said the recovery in equities provided only limited support to the rupee amid broader global pressures.
According to exchange data, foreign institutional investors sold equities worth ₹7,558.19 crore on a net basis in the previous session.
