The rupee extended its losing streak on Friday, plunging 82 paise to close at an all-time low of 93.71 against the US dollar, marking a weekly decline of about 1.3 per cent — its sharpest since late 2022.
The currency remained under pressure amid sustained foreign fund outflows and a surge in crude oil prices triggered by escalating geopolitical tensions in West Asia.
Oil prices climbed to nearly $120 per barrel this week before easing to around $110 on Friday, as some countries signalled willingness to ensure safe passage of vessels through the Strait of Hormuz.
The oil shock has accelerated capital outflows, with foreign investors pulling out over $8 billion from Indian equities so far this month — the highest since January 2025.
Market participants expect the rupee to weaken further towards the 95 mark, raising concerns over a widening trade deficit, elevated inflation and potential growth slowdown.
“The rupee resumed its downward spiral to fresh record lows following Thursday’s holiday, battered by persistent foreign fund outflows and surging crude oil prices,” said Dilip Parmer, senior research analyst at HDFC Securities.
