Mumbai, March 13 The rupee trimmed some losses and closed the session 5 paise lower at a fresh record low of 92.30 against the US dollar on Friday, with crude oil prices stabilizing around USD 100/barrel, even as global sentiment remained volatile due to the West Asia crisis.
A strengthening US dollar, heavy outflow of foreign funds, and persistent selling in the domestic equity markets put pressure on the rupee, according to forex traders.
At the interbank foreign exchange, the local unit opened at 92.33 and hit the lowest intra-day level of 92.47 against the US dollar. During the session, the currency trimmed some of its losses and settled at a new record low of 92.30 against the dollar, down 5 paise from its previous close.
In the previous session, the rupee lost 24 paise to settle at 92.25 against the US dollar, its lowest-ever closing level until Thursday.
"The rupee hit a new record low on Friday due to weak domestic markets and a strong dollar. Rising crude oil prices and continued outflows from foreign investors also put pressure on the rupee," said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.
"We expect the rupee to trade with a negative bias due to risk aversion in global markets amid the ongoing US-Israel and Iran conflict. Rising crude oil prices and concerns about inflation may further pressure the rupee. A strong dollar and rising US treasury yields may also weigh on the domestic unit," he added.
Choudhary expects the rupee to trade in the range of Rs 92.10-92.80.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading 0.43 per cent higher at 100.17.
Brent crude, the global oil benchmark, was trading higher by 0.42 per cent at USD 100.88 per barrel in futures trade.
On the domestic equity market front, the 30-share BSE Sensex crashed 1,470.50 points, or 1.93 per cent, to 74,563.92, while the Nifty plummeted to 23,151.10, down 488.05 points, or 2.06 per cent.
Foreign institutional investors sold equities worth Rs 10,716.64 crore on a net basis on Friday, according to exchange data.
The country's forex reserves dropped by USD 11.683 billion to USD 716.810 billion during the week ended March 6, the RBI data showed on Friday. In the previous reporting week, the overall reserves had increased by USD 4.885 billion to an all-time high of USD 728.494 billion.