The Indian rupee continued its downward trend on Tuesday, depreciating by 35 paise to settle at a fresh all-time low of 93.88 against the US dollar. The decline comes amid persistent global and domestic pressures, including a stronger US dollar and elevated crude oil prices, which have weighed heavily on investor sentiment.
At the interbank foreign exchange market, the rupee opened weaker at 93.66 and moved within a narrow range throughout the trading session before closing at 93.88 (provisional). This follows a volatile previous session in which the currency briefly breached the 94-mark for the first time before stabilising by the end of the day.
Market experts attribute the rupee’s weakness to continued foreign fund outflows and heightened geopolitical uncertainty, particularly due to the ongoing tensions in West Asia. Rising crude oil prices have further compounded the pressure, as India remains heavily dependent on imports to meet its energy needs.
The dollar index, which tracks the strength of the US currency against a basket of major global currencies, edged higher during the day, adding to the downward pressure on emerging market currencies like the rupee. Brent crude prices also remained firm, increasing concerns about inflation and the country’s current account balance.
Despite the weakness in the currency, Indian equity markets showed resilience. The BSE Sensex surged more than 1,300 points to close above the 74,000 mark, while the NSE Nifty also ended the session in positive territory, reflecting continued investor confidence in domestic equities.