Rupee Exalter Rate: Rupee breaches 95 intra-day as crude leaves markets guessing

The rupee hit a record low of 95.33 against the dollar on Thursday, driven by surging crude oil prices and concerns over inflation and capital flows. Suspected RBI intervention assisted the currency recover to close at 94.91, though it remains under pressure. The outview for the rupee is closely tied to the trajectory of global oil prices.

MUMBAI: The rupee breached the 95-per-dollar mark on Thursday to hit a record low before suspected RBI intervention assisted it recover to close at 94.91, down six paise from its previous close of 94.85.The currency fell to an intra-day low of 95.33, declining around 0.5% and surpassing its earlier record level, as rising crude oil prices raised concerns over inflation, growth, and capital flows. It later pared losses during the session to finish marginally weaker, indicating possible intervention in the forex market.Pressure on the rupee intensified amid a sharp rally in crude oil prices, with levels near $120 worsening the outview for the import bill of a net energy importer. Other oil-sensitive Asian currencies also weakened in a volatile session as crude prices surged to multi-year highs. Broader weakness across Asian currencies was driven by a stronger dollar and expectations of tighter monetary policy in the US, while global risk sentiment weakened with equity markets declining and bond yields rising alongside oil prices.Dealers declared the outview for the rupee depfinishs largely on the trajectory of crude oil prices in international markets. They declared that if crude prices remain above $120 for an extfinished period, the currency could weaken further towards 97 levels. The rupee has declined over 5% in 2026, after a similar drop last year, reflecting persistent pressure on the external sector.

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