Mumbai, March 18 (NationPress) On Wednesday, the rupee plummeted to a new all-time low of 92.63 against the US dollar, driven by a strengthening greenback and persistent outflows of foreign funds.

In the interbank foreign exchange market, the rupee began trading at 92.42 and fluctuated within a limited range before succumbing to its historical low during the trading session.

On Tuesday, the currency had settled at 92.37.

“The Indian rupee reached a new record low as it fell below the crucial 92.50 mark, triggering selling pressure, further intensified by limited dollar liquidity ahead of a bank holiday,” stated Dilip Parmar, Senior Research Analyst at HDFC Securities.

Despite a favorable risk environment and declining crude prices, the rupee has faced heightened demand for dollars from importers, according to Parmar.

“With ongoing geopolitical tensions raising concerns over a widening trade deficit, year-end demand proves to be strong. We anticipate USD/INR encountering resistance at 92.85, with support around 92.40,” he elaborated.

As the West Asia conflict continues, the rupee has depreciated by over 1%.

Similarly, Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, expressed that the currency remains under strain due to escalating import costs.

“The rupee traded significantly lower at approximately 92.60, setting new all-time lows as the ongoing pressure from a surging import bill burdens the currency. High crude oil prices, along with shipping disruptions through the Strait of Hormuz, are amplifying concerns regarding sustained elevated import costs for India,” he noted.

“The overall macroeconomic environment remains challenging, with crude prices expected to stay high, keeping the rupee under pressure. In the short term, we expect the rupee to fluctuate between 92.25 and 92.95 against the US dollar,” Trivedi added.

Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, was slightly up at 99.62.

Brent crude, the global oil benchmark, was trading marginally lower at about $103.2 per barrel in futures trading.

In the domestic stock market, major indices were in the green, with the Sensex rising by 719.77 points to 76,790.61 and the Nifty gaining 215.75 points to 23,796.90.

Foreign institutional investors (FIIs) continued to be net sellers, offloading equities worth Rs 4,741.22 crore on Tuesday, as per exchange data.

In the commodities sector, precious metals experienced a notable downturn. Gold decreased by 0.54% to Rs 1,55,142, while silver saw a 1.42% drop to Rs 2,49,501.