Rupee Hits Record Intraday Low Of 95.34 Against US Dollar

The rupee on Thursday slid to a record intraday low of 95.34 against the US dollar before trading at 95.25 in mid-session deals, weighed down by surging global crude oil prices and selling pressure in domestic equities amid the West Asia crisis.

Meanwhile, the US Federal Reserve kept interest rates unchanged amid persistent inflationary pressures driven by elevated crude prices.

At the interbank foreign exchange market, the rupee opened at 95.01 against the dollar and fell by 46 paise to hit a record intraday low of 95.34. In the afternoon session, the domestic currency was trading 37 paise lower at 95.25.

On Wednesday, the rupee had weakened by 20 paise to settle at an all-time low of 94.88 against the US dollar.

"The main effect on the rupee has been from the rising oil prices, which touched USD 120 per barrel and looked headed for further upside as the US continues with its blockade of Iranian ports, while Iran does not allow any ship/tanker to pass through the Strait of Hormuz," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was marginally lower by 0.03 per cent at 98.79.

Brent crude, the global oil benchmark, was up 3.46 per cent at USD 122.11 per barrel in futures trade.

In the domestic equity market, the Sensex dropped 687.75 points to 76,808.61 in afternoon trade, while the Nifty fell 228.60 points to 23,949.05.

Foreign institutional investors sold equities worth Rs 2,468.42 crore on Wednesday, according to exchange data.

"FPIs continue with their sale of Indian Equities and debt (the yield touched 7 per cent on Wednesday) and are also dollar buyers consistently," Bhansali added.

(with PTI inputs)