Mumbai: The rupee touched a fresh record low of 92.63 against the US dollar, amid a firming greenback and continued foreign fund outflows.
At the interbank foreign exchange, the rupee opened at 92.42 and moved in a narrow range before weakening to its all-time low during the session. The currency had closed at 92.37 on Tuesday.
"The Indian rupee slipped to a fresh record low as a break below the 92.50 level triggered selling pressure, exacerbated by thin dollar liquidity ahead of a bank holiday," said Dilip Parmar, Senior Research Analyst at HDFC Securities.
Despite a backdrop of strong risk appetite and softer crude prices, the currency faced aggressive dollar demand from importers, according to Parmar.
“With geopolitical tensions stoking fears of a wider trade deficit, year-end demand remains robust. We see USD/INR facing resistance at 92.85, with support at 92.40,” he added.
Amid the ongoing West Asia conflict, the rupee has weakened by more than 1 per cent.
Echoing similar concerns, Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, said the currency remains under pressure due to rising import costs.
"The rupee traded sharply weaker at around 92.60, marking fresh all-time lows, as persistent pressure from a rising import bill continues to weigh on the currency. Elevated crude oil prices, coupled with shipment disruptions through the Strait of Hormuz, are increasing concerns over sustained higher import costs for India," he said.
