Noida, May 1 (APAC Media): The Indian rupee fell to a fresh record low of 95.33 against the US dollar on Thursday, weighed down by a sharp surge in global crude oil prices that heightened concerns over India’s external account position and inflation outlook.
Forex market participants said the domestic currency opened on a weak note and soon slipped past the 95 marks during intraday trade.
The decline came as Brent crude oil prices surged above $125 per barrel in volatile global trading, stoking concerns over rising import costs for oil-dependent economies like India.
Traders attributed the rupee’s decline to sustained dollar demand from importers, particularly oil marketing companies, and continued foreign portfolio outflows from domestic equities. Broad-based strength in the US dollar, supported by expectations of prolonged higher interest rates in major developed economies, also weighed on emerging market currencies.
The rupee’s depreciation was partly cushioned by suspected intervention from the Reserve Bank of India (RBI), dealers said.
However, the central bank is believed to be focused on curbing excessive volatility rather than defending any specific exchange rate level.
Market analysts warned that persistently high crude oil prices could widen India’s current account deficit and add to domestic inflationary pressures, particularly in fuel-sensitive sectors. They noted that as India imports more than 80% of its crude oil requirements, fluctuations in global oil prices have a direct impact on the currency.
A forex trader said, “The combination of strong crude oil prices and dollar demand is keeping pressure on the rupee,” adding that global risk sentiment remains weak due to geopolitical uncertainties and tighter financial conditions.
Market participants are closely watching global oil price movements, US Federal Reserve policy signals, and foreign investment flows for further cues on the rupee’s trajectory in the coming sessions.
Disclaimer:
Gold prices and rates are for informational purposes only. APAC Media is not liable for any discrepancies or financial decisions made based on this data. Please consult an authorised advisor before making investment choices.
Also Read:
MCX Gold, Silver Rate Today: 24K, 22K Prices, City-Wise Updates Amid Global Stress
