MUMBAI: The rupee closed at 92.46 on Friday after touching a record low of 92.48, down 27 paise from the previous close of 92.19, as high crude prices and weekend demand for dollars weighed on sentiment. Market participants said currency losses were partly limited by likely central bank intervention.Energy prices remain elevated as the Gulf conflict approaches the two-week mark, raising concerns about prolonged geopolitical tensions and keeping financial markets on edge. Foreign investors have sold nearly $5 billion of domestic equities this month, adding pressure on the currency, while domestic equity markets declined sharply with benchmark indices falling about 2% during the session.“Crude near $100 and a stronger dollar are keeping markets on edge, while heavy FII outflows—about Rs 46,000 crore in eight days—have added pressure on the rupee. Most Asian currencies have weakened and supply-chain risks persist. RBI is intervening to curb volatility, but its role is largely a speed breaker. Unless geopolitical tensions ease, the rupee may remain under pressure; importers should hedge dips below 92 while exporters may wait for spikes,” said KN Dey, a forex consultant. Global currency markets also reflected the strain.Most Asian currencies weakened, while the euro slipped to a seven-month low against the dollar as investors began moving towards the greenback.TNThe dollar index rose to around 100, signalling broad strength in the US currency.
