Kamal Ghorui
MUMBAI: The rupee breached the 95-per-dollar mark on Thursday to hit a record low before suspected RBI intervention helped it recover to close at 94.91, down six paise from its previous close of 94.85.The currency fell to an intra-day low of 95.33, declining around 0.5% and surpassing its earlier record level, as rising crude oil prices raised concerns over inflation, growth, and capital flows. It later pared losses during the session to end marginally weaker, indicating possible intervention in the forex market.Pressure on the rupee intensified amid a sharp rally in crude oil prices, with levels near $120 worsening the outlook for the import bill of a net energy importer. Other oil-sensitive Asian currencies also weakened in a volatile session as crude prices surged to multi-year highs. Broader weakness across Asian currencies was driven by a stronger dollar and expectations of tighter monetary policy in the US, while global risk sentiment weakened with equity markets declining and bond yields rising alongside oil prices.Dealers said the outlook for the rupee depends largely on the trajectory of crude oil prices in international markets. They said that if crude prices remain above $120 for an extended period, the currency could weaken further towards 97 levels. The rupee has declined over 5% in 2026, after a similar drop last year, reflecting persistent pressure on the external sector.
