The Indian rupee reached a new low of 92.63 against the US dollar, influenced by a strong dollar and ongoing foreign fund outflows. Starting at 92.42, the rupee fluctuated within a narrow range before hitting the all-time low during the trading session. The previous day had seen the rupee close at 92.37.
Senior Research Analyst at HDFC Securities, Dilip Parmar, attributed the rupee’s decline to selling pressure triggered by breaking below the 92.50 mark and limited dollar liquidity before a bank holiday. Despite favorable risk appetite and lower crude prices, the rupee faced heightened dollar demand from importers.
Jateen Trivedi, VP Research Analyst at LKP Securities, highlighted concerns over rising import costs impacting the rupee. With the rupee trading around 92.60, marking fresh lows, Trivedi emphasized the persistent pressure from increasing import bills. He noted that elevated crude oil prices and disruptions in shipments through the Strait of Hormuz were contributing to concerns about sustained higher import costs for India.
Amid the West Asia conflict, the rupee has depreciated by over 1 percent. Trivedi projected the rupee to trade between 92.25 and 92.95 against the US dollar in the near term. The dollar index, tracking the greenback against a basket of currencies, was slightly up at 99.62, while Brent crude traded lower at around $103.2 per barrel in futures trade.
