30.04.202604:03:04UTC+00Rupee Slips to Record Low

The Indian rupee weakened to about 95.1 per dollar, setting a new record low as persistent external headwinds continued to pressure currency markets. The currency is on track for a third consecutive weekly decline, despite the central bank’s interventions to rein in speculative activity. The US dollar has regained strength, underpinned by comments from Federal Reserve officials that have kept Treasury yields elevated and sustained the dollar’s investment appeal, even with interest rates left unchanged. At the same time, a sharp rise in crude oil prices—with Brent approaching $121 per barrel—is further weighing on the rupee. According to traders, elevated oil costs and subdued foreign capital inflows are reinforcing a sustained downward trajectory. Looking ahead, efforts to stabilize the rupee are expected to become more challenging. Analysts note that the problem now extends beyond speculative pressure to a broader shortfall in capital inflows. Current forecasts indicate a financing gap of roughly $40 billion to $50 billion for this fiscal year, substantially larger than in recent years.