Rupee slides to record low, crosses 96 vs USD for the first time

Forex traders said the USD/INR pair is reeling under tremendous pressure amid persistent outflows of foreign capital and weak net FDI inflows, exerting pressure on the balance of payments.

Ongoing global uncertainties, relatively high valuations, and the lack of AI-led investment opportunities have weighed on capital flows.

The currency later recovered slightly to end at 95.96, down 0.2% from the previous closing.

At the interbank foreign exchange, the rupee opened at 95.86, then lost ground and fell to a record low of 96.14 in intraday trade, registering a fall of 50 paise from its previous close.

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The rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the US dollar on Thursday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.28, higher by 0.47 per cent.Brent crude, the global oil benchmark, was trading up 3.20 per cent at USD 109.20 per barrel in futures trade.

On the domestic equity market front, the Sensex was trading 130.74 points or 0.17 per cent lower at 75,267.98, while the Nifty was down 17.60 points or 0.07 per cent at 23,672.00.

Foreign Institutional Investors turned net buyers, purchasing equities worth Rs 187.46 crore on Thursday, according to exchange data.

Meanwhile, the country’s exports in April rose by 13.78 per cent to USD 43.56 billion despite global challenges, Commerce Secretary Rajesh Agrawal said on Friday.

Imports grew 10 per cent year-on-year to USD 71.94 billion in April. The trade deficit during the month stood at USD 28.38 billion.

Rupee falls to 96.08 as dollar index rises to 99.30, Brent oil rises to USD 109 per barrel, and India’s trade deficit comes to USD 28.38. Asian currencies fell to their lowest after hawkish comments from US policy makers, better data from the US, and not-so-successful Trump-Xi meeting, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.

Chinese President Xi Jinping and his US counterpart Donald Trump on Friday hailed their talks as “historic” and “landmark”, as the American leader wrapped up his three-day visit on a high note, but no deals on any contentious issues were announced.

Both Presidents, who held several rounds of talks covering a range of global issues, including the Iran war and bilateral trade frictions, concluded their discussions with a private meeting at Zhongnanhai, the well-guarded compound in Beijing where top leaders reside.