The Indian rupee weakened sharply on Wednesday, touching a fresh record low of around 96.90 against the US dollar. The currency extended its losing streak for the eighth straight trading session as global and domestic pressures continued to weigh on sentiment.
The fall came as demand for the US dollar increased from importers, especially oil companies, while foreign investors continued to pull money out of Indian markets. Traders said this combination has kept pressure on the rupee for several sessions now.
One of the key reasons behind the weakness is the rise in global crude oil prices. Brent crude has remained elevated due to ongoing geopolitical tensions in the Middle East, particularly the Iran conflict. Since India imports most of its oil, higher crude prices increase dollar demand in the local market, which weakens the rupee further.
Foreign portfolio investors have also been consistently selling Indian equities and debt, adding more pressure on the currency. At the same time, a strong US dollar and higher global bond yields have made emerging market investments less attractive.
The rupee’s fall also reflects broader global uncertainty. Investors are cautious due to inflation concerns, interest rate expectations in major economies, and rising geopolitical risks. Analysts said the currency weakness is more driven by external factors than domestic issues.
Market experts warned that if oil prices stay high and foreign outflows continue, the rupee could remain under pressure in the near term. Some also said that persistent weakness in the currency could lead to higher import costs, especially for fuel and commodities, which may add to inflation in India.
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