Mumbai, March 12 The rupee touched a fresh intra-day low on Thursday and closed the session 24 paise down at its lowest level of 92.25 against the US dollar, due to elevated crude oil prices and massive withdrawal of foreign capital.
The Indian currency, caught in the crossfire amidst the ongoing conflict in West Asia, was weighed down by heavy selling in domestic equity markets and a strengthening US dollar, according to forex traders.
At the interbank foreign exchange market, the local unit opened at 92.25 and hit its lowest intra-day level of 92.36 against the dollar. The unit ended the session at its lowest level of 92.25 against the dollar, registering a loss of 24 paise from the previous closing level.
The rupee's previous lowest intra-day level of 92.35 against the dollar was recorded on March 9, when it also logged the record closing low of 92.21 versus the dollar.
"The rupee declined, hitting a record low of 92.36 due to weak domestic markets and rising crude oil prices. A positive US dollar index and FII outflows also weighed on the rupee. However, the rupee recovered due to supposed intervention by the RBI," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.
"We expect the rupee to trade with a negative bias due to rising crude oil prices and risk aversion in the global markets amid the ongoing geopolitical tensions in the Middle East, as it entered the 13th day. Continued FII outflows may further put pressure on the rupee," he said.
According to Choudhary, the USD-INR spot price is expected to trade in the range of Rs 91.70 to Rs 92.40.
The dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading 0.15 per cent higher at 99.38.
Brent crude, the global oil benchmark, was trading higher by 5.70 per cent at USD 97.22 per barrel in futures trade.
"Oil movements remain a key driver for the rupee, with crude on the domestic exchange rising another 4 per cent today, which tends to widen India's import bill and weigh on the currency," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
"For now, the expected trading range for the rupee is 91.45–92.75, while market participants will closely watch US initial jobless claims today, and US GDP data tomorrow," Trivedi said.
On the domestic equity market front, the Sensex plunged 829.29 points or 1.08 per cent to settle at 76,034.42, while the Nifty tanked 227.70 points or 0.95 per cent to 23,639.15.
Foreign institutional investors sold equities worth Rs 7,049.87 crore on a net basis on Thursday, according to exchange data.
