MUMBAI, March 24: The Indian rupee extended its slide on Tuesday, falling 35 paise to hit a fresh record low of 93.88 against the US dollar in early trade.
The currency opened at around 93.66 in the interbank market and weakened further through the session, reflecting sustained pressure from global cues and cautious sentiment in domestic markets.
Dollar Strength and Global Signals Keep Rupee Under Pressure
The latest fall comes amid a firm US dollar, which has been gaining ground against most major currencies. For emerging markets like India, this typically translates into added pressure on local currencies.
Rising crude oil prices have also played a role. As India relies heavily on imports to meet its energy needs, higher oil prices increase demand for dollars, which in turn weighs on the rupee.
Recent global developments, including market volatility and geopolitical uncertainties, have further dampened risk appetite. This has led to steady outflows from domestic equities, adding to currency weakness.
Domestic Market Trends Add to Weakness
Back home, the tone in equity markets has remained subdued, with foreign institutional investors continuing to trim their exposure.
Traders point out that when capital flows turn negative, the demand for dollars rises, putting immediate pressure on the rupee.
The currency has been testing new lows in recent sessions, and the latest fall to 93.88 signals that the pressure is yet to ease.
