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The record low level of the rupee against the US dollar comes amid costlier crude oil and persistent foreign portfolio outflows.
Rupee hits fresh all-time low.
Rupee at Fresh All-Time Low: Continuing its downward trend, the Indian rupee on Thursday declined another 20 paise to hit its fresh all-time low of 95.86 against the US dollar. The record low level comes amid costlier crude oil and persistent foreign portfolio outflows.
At the interbank foreign exchange market, the rupee opened at 95.74, then fell further to a record low of 95.86 against the US dollar, registering a fall of 20 paise from its previous close.
Brent crude remained elevated at $106 a barrel amid US President Donald Trump’s meeting with Chinese President Xi Jinping, with the Iran war in focus.
The rupee has declined 1.4% this week and hit record lows in each trading session between Tuesday and Thursday.
In the previous session on Wednesday, the local currency had hit its previous record low of 95.80, before settling at 95.66 against the dollar.
“From jewellery showrooms to fuel stations, every imported commodity is now carrying a heavier price tag, and the rupee is feeling the weight of it,” CR Forex Advisors MD – Amit Pabari said.
Adding to the uncertainty, geopolitical headlines continue to swing market sentiment almost every few hours, Pabari said.
“US President Donald Trump stated that he does not expect China’s help in resolving the Iran conflict, while peace negotiations between Washington and Tehran remain on hold as both sides continue to disagree on key conditions,” he added.
While Trump has said he may not need China’s help to resolve the 11-week long war, he is expected to seek Xi’s support. The key question is whether the meeting will yield any progress on the Iran conflict, ING said in a note.
Some hope China could exert pressure on Tehran to strike a deal with the U.S. and allow energy flows through the Strait of Hormuz to resume, it said.
Chinese President Xi Jinping on Thursday said that 2026 will be “historic, landmark year” for China-US relations as he welcomed US President Donald Trump at the Great Hall of the People for talks with him.
The leaders of the world’s two largest economies are scheduled to have a few rounds of talks on Thursday and Friday.
The visit by Trump comes amid growing economic and geopolitical uncertainties arising from conflicts in the West East and the subsequent global energy shock that has taken a toll, particularly in Asia.
Xi and Trump are expected to discuss the war in Iran, trade, technology and Taiwan, among other points of contention, during the visit.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.48, down 0.04 per cent.
Brent crude, the global oil benchmark, was trading higher by 0.44 per cent at USD 106.10 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 424.44 points to 75,033.42 in early trade, while Nifty climbed 141.90 points to 23,554.50.
Foreign Institutional Investors offloaded equities worth Rs 4,703.15 crore on Wednesday, according to exchange data.
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