Rupee hits record low of 94.56 against US dollar

Mumbai: The rupee breached the 94.50-mark for the first time against the US dollar during intra-day trade on Friday and hit a record low of 94.56, weighed down by elevated oil prices and a stronger greenback amid no breakthrough in the West Asia conflict.

A sharp decline in the domestic equity markets and sustained FII outflows put further pressure on the local unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at 94.18 and kept sliding to hit 94.56 against the US dollar during intra-day trade, down 60 paise from its previous close.

The rupee slumped 20 paise to close at a record low of 93.96 against the US dollar on Wednesday. Stock, forex, commodity, and bullion markets remained closed on Thursday on account of Ram Navami.

"With consistent buying from oil companies, the rupee breached 94.50 with exporters holding their inflows, while importers buy dollars for their payables," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.08 per cent higher at 99.67.

Brent crude, the global oil benchmark, rose sharply overnight before easing marginally to $107.4 per barrel, down 0.53 per cent, in futures trade.

On the domestic equity market front, the Sensex was trading 1,212.15 points, or 1.61 per cent, down at 74,061.30, while the Nifty slumped 355.20 points, or 1.52 per cent, to 22,951.25.

Foreign institutional investors sold equities worth Rs 1,805.37 crore on a net basis on Wednesday, according to exchange data.