The Indian rupee reached a new low on Friday, dropping to 93.12 against the US dollar, impacted by global disruptions in the supply chain due to escalating tensions in the Middle East. This marks a 0.55% decline from its previous low of 92.63 on Wednesday. Since the onset of tensions in West Asia, the rupee has depreciated by close to 2%.
Experts note that the USD/INR pair is currently trading above 92.8, indicating ongoing pressure on the rupee amidst high crude prices and global risk aversion. If the currency sustains a move above 93.00, it could reinforce the upward bias, with resistance levels expected in the 93.20–93.40 range, and support near 92.70 and 92.50–92.40 levels, as highlighted by Ponmudi R, CEO of Enrich Money.
Despite the rupee’s struggles, domestic stock markets showed resilience, with the Sensex climbing over 900 points (approximately 1%) and the Nifty gaining around 300 points (1.35%). On the other hand, foreign institutional investors (FIIs) continued as net sellers, disposing of equities valued at Rs 7,558.19 crore on Thursday, according to exchange data. Global oil prices also saw a decline following indications from the US regarding potential relaxation of sanctions on Iranian crude, in a bid to ensure smooth shipping through the Strait of Hormuz.
