Rupee hits record intraday low of 95.34 against US dollar amid West Asia standoff

Mumbai: The rupee on Thursday hit a lifetime intraday low of 95.34 against the US dollar before trading at 95.25 in the mid-session deals, tracking surging global crude oil prices and selling in domestic equities amid the West Asia crisis.

Meanwhile, the US Fed kept rates unchanged amid strong inflation pressure triggered by high crude prices.

At the interbank foreign exchange market, the rupee opened at 95.01 against the dollar, then lost 46 paise to touch a record intraday low of 95.34. In the afternoon session, the domestic currency was trading 37 paise lower at 95.25.

On Wednesday, the rupee depreciated 20 paise to close at an all-time low of 94.88 against the US dollar.

"The main effect on the rupee has been from the rising oil prices, which touched $120 per barrel and looked headed for further upside as the US continues with its blockade of Iranian ports, while Iran does not allow any ship/tanker to pass through the Strait of Hormuz," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading slightly lower by 0.03 per cent to 98.79.

Brent crude, the global oil benchmark, was trading 3.46 per cent higher at $122.11 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 687.75 points to 76,808.61 points in afternoon trade, while the Nifty dived 228.60 points to 23,949.05.

Foreign Institutional Investors offloaded equities worth Rs 2,468.42 crore on Wednesday, according to exchange data.

"FPIs continue with their sale of Indian Equities and debt (the yield touched 7 per cent on Wednesday) and are also dollar buyers consistently," Bhansali added.