The Indian rupee came under renewed selling pressure on Thursday, sliding to a fresh record intraday low close to 95.80 against the US dollar during early trade. The currency’s decline extended recent losses, reflecting sustained weakness in domestic forex markets.
The pressure on the currency is largely driven by strong dollar demand from importers and ongoing foreign portfolio investor (FPI) outflows. Market participants said dollar buying has remained consistently higher than supply, keeping the rupee under strain throughout recent sessions.
Global crude oil prices added further pressure. Brent crude continues to trade at elevated levels due to geopolitical tensions, increasing India’s import costs. As India is heavily dependent on oil imports, higher crude prices typically widen the trade deficit and raise demand for dollars, which weakens the rupee.
A strong US dollar in global markets has also contributed to the weakness. Investors are shifting toward safer assets amid global uncertainty, strengthening the dollar index and weighing on emerging market currencies, including the rupee.
Forex traders noted that the currency has been under steady depreciation pressure, with multiple sessions seeing new record lows. The trend reflects a combination of external headwinds and persistent capital outflows from Indian equity and debt markets.
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