The Indian rupee slipped to a fresh record intraday low near 95.80 against the US dollar on Thursday, extending its recent losing streak in the foreign exchange market. The currency touched the psychological level early in the session before seeing limited recovery, according to market participants.
The decline reflects sustained pressure from multiple global and domestic factors. Importer demand for US dollars remained strong, while foreign portfolio investor (FPI) outflows continued, adding to the strain on the rupee. Traders said these combined flows have consistently tilted the balance toward dollar demand.
Rising crude oil prices were another key driver. Brent crude continues to trade at elevated levels due to geopolitical tensions in West Asia, increasing India’s import bill and worsening the trade deficit outlook. Since India imports most of its oil, higher crude prices typically translate into higher demand for dollars, weakening the rupee.
A strong US dollar index in global markets has also weighed on emerging market currencies. Investors are shifting toward safer assets amid global uncertainty, which has further supported dollar strength.
Forex market analysts noted that the rupee has been under continuous downward pressure, repeatedly breaking previous lows over the past sessions. They said the current trend reflects both external shocks and persistent capital outflows from domestic markets.
Despite the currency weakness, equity markets remained relatively stable in earlier trading sessions, though analysts caution that prolonged rupee depreciation could eventually feed into higher inflation and import costs.