Rupee near record low at 92.43 as oil prices rise and foreign funds exit

The Indian rupee weakened further in early trade on Monday, slipping 13 paise to 92.43 against the US dollar, as rising global oil prices and heavy withdrawal of foreign funds continued to weigh on the domestic currency.

Forex traders said the rupee remained under pressure amid persistent geopolitical uncertainties, surging crude oil prices, and volatile sentiment in domestic equity markets . These factors have made investors cautious, leading to significant outflows from Indian equities and putting additional strain on the currency.

At the interbank foreign exchange market , the rupee opened at 92.44 per dollar and hovered close to its lowest-ever intra-day levels , eventually trading at 92.43 , marking a fall of 13 paise compared with its previous close.

The currency had already touched a record intra-day low of 92.47 on Friday before ending the session at 92.30 , its weakest closing level so far. Analysts say continued capital outflows and elevated global energy prices could keep the rupee under pressure in the near term.

Meanwhile, the US dollar index , which measures the strength of the American currency against a basket of six major global currencies, was slightly lower at 99.98 , down about 0.13 per cent . Despite the mild retreat in the dollar index, pressure on the rupee persisted due to domestic and global economic factors.

Another key factor impacting the currency was the rise in global crude prices. Brent crude , the international oil benchmark, climbed over 1 per cent to USD 104.22 per barrel in futures trade , increasing concerns for oil importing countries like India, where higher crude prices typically widen the trade deficit and weaken the currency.

In contrast, Indian equity markets showed modest gains during early trading. The Sensex rose by 139 points to 74,703 , while the Nifty advanced 51 points to 23,202 . However, the gains were overshadowed by heavy foreign investor selling.

Data from stock exchanges showed that foreign institutional investors (FIIs) sold equities worth Rs 10,716.64 crore on a net basis on Friday , reflecting cautious global sentiment and adding to the pressure on the rupee.

Adding another layer of concern, the country’s foreign exchange reserves also declined sharply . According to the Reserve Bank of India , India’s forex reserves dropped by USD 11.68 billion to USD 716.81 billion for the week ended March 6. This came after reserves had touched a record high of USD 728.49 billion in the previous week .

Market experts say that global uncertainties, rising energy costs, and continued foreign fund outflows will remain key factors influencing the rupee’s movement in the coming days.