Rupee Falls to Fresh Record Low of 95.20 Against US Dollar in Early Trade

The Indian rupee weakened sharply to an all-time low of 95.20 per US dollar in early trade on Thursday, extending losses amid sustained global and domestic pressures including surging crude oil prices, a firm US dollar, geopolitical tensions, and continued foreign capital outflows.

At the interbank foreign exchange market, the rupee opened at 95.01 against the US dollar and slipped further to 95.20 , marking a decline of 32 paise over its previous close. The currency had already ended the previous session at another record low of 94.88 , reflecting a continued weakening trend. During intraday trade, the rupee also briefly touched around 95.33–95.34 , before recovering slightly, indicating heightened volatility in the currency market.

The fall was primarily driven by a sharp rise in global crude oil prices, with Brent crude hovering near USD 121–122 per barrel and briefly surging up to around USD 126 , its highest level in several years. Traders said the sustained rally in oil prices has significantly increased concerns over India’s import bill and external account pressures, weighing heavily on the domestic currency.

The US dollar also strengthened after the US Federal Reserve kept interest rates unchanged , supporting global demand for the greenback. The dollar index remained firm in the 98–99 range , adding further pressure on emerging market currencies, including the rupee.

Forex market participants also pointed to rising geopolitical tensions in West Asia, particularly concerns around supply routes such as the Strait of Hormuz , which have fuelled fears of oil supply disruptions and kept crude prices elevated.

Adding to the pressure, Foreign Institutional Investors (FIIs) continued to offload Indian equities and debt, with estimated net outflows exceeding USD 20 billion in recent months , increasing dollar demand in the domestic market. Market experts also noted that state-run banks were likely selling dollars on behalf of the Reserve Bank of India (RBI) to curb sharper depreciation, although this intervention has only helped slow the fall rather than reverse the trend.

Domestic equity markets mirrored the weak sentiment, with the Sensex falling over 800 points and the Nifty declining nearly 300 points in early trade , reflecting broad-based risk aversion among investors.