Rupee Drops 39 Paise to All-Time Low of 95.23 vs US Dollar: Oil Prices Near USD 110, Markets Volatile
Rupee falls 39 paise to record low of 95.23 vs US dollar amid oil prices near USD 110 and global market volatility.
In Mumbai, the Indian rupee fell by 39 paise to close at an all-time low of 95.23 against the US dollar on Monday, amid ongoing Middle East tensions impacting global markets. Rising oil prices, hovering near USD 110 per barrel, and fears of inflation and economic slowdown have put pressure on the currency. The rupee movement remains under pressure and is being closely monitored.
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Rupee Hits All-Time Low Against US Dollar
At the interbank foreign exchange market:
- Opening level: 94.95 against the US dollar
- Closing level: 95.23 (lowest-ever closing level)
- Fall: 39 paise compared to previous close
Previous data:
- Thursday closing: 94.84
- Earlier record low: 94.88 on April 29
Markets were closed on Friday due to Maharashtra Day.
Oil Prices Near USD 110 Impact Indian Economy
Forex traders highlighted that Brent crude prices are affecting oil-importing countries like India.
- Brent crude: USD 109.65 per barrel (up 1.37%)
- Earlier hovering near USD 110 per barrel
Higher oil prices are:
- Increasing inflation concerns
- Impacting trade balance
- Causing economic slowdown fears
Expert View: Pressure on Rupee Likely to Continue
Dilip Parmar said:
- “The Indian rupee has hit a record low as the dollar recovered and crude oil prices held firm.”
- “Persistent dollar demand is expected to keep the pressure on the rupee in the short term, driving the USD/INR higher toward the 95.35 and 95.70 levels.”
He added that foreign fund outflows and oil price surge are straining the economy.
Dollar Index and Global Factors
- Dollar index: 98.26 (up 0.11%)
- Global geopolitical tensions impacting supply chains
IFA Global noted that:
- Focus was also on West Bengal election results
- BJP victory could be positive for domestic assets
- However, global geopolitics will remain the key factor
Stock Market Gains Despite Rupee Weakness
On the domestic equity market front:
- Sensex: up 355.90 points to 77,269.40
- Nifty: up 121.75 points to 24,119.30
Foreign Institutional Investors:
- Bought equities worth ₹2,835.62 crore
Fiscal Stress Warning by Expenditure Secretary
V Vualnam said:
- The coming quarters and next year may have “a lot of stress points”
- Fiscal stress is a reality
- Capital expenditure (capex) will remain a priority
He made these remarks at the ICPP Growth Conference organised by Ashoka University.
The Indian rupee fell 39 paise to close at a record low of 95.23 against the US dollar in Mumbai on May 4, driven by Middle East tensions, rising oil prices near USD 110 per barrel, and global market volatility. Experts warn continued pressure due to strong dollar demand and foreign fund outflows. Despite this, stock markets gained, while officials cautioned about fiscal stress in the coming months. The situation remains under close watch.
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