Rupee falls past 93 to the US dollar for first time amid West Asia tensions

The Indian rupee slid to an all-time low on Friday, breaching the 93 mark against the US dollar for the first time, as escalating tensions in West Asia continued to unsettle global markets.

The currency weakened to 93.12, marking a decline of around 0.55 per cent on the day and surpassing its previous record low earlier in the week. Since the onset of the latest regional conflict, the rupee has depreciated by nearly 2 per cent, reflecting sustained pressure from external factors.

Analysts attributed the fall to a combination of elevated crude prices, supply chain disruptions and a broader shift towards safe-haven assets. The dollar-rupee pair has moved decisively above key levels, signalling continued weakness in the domestic currency.

Market participants said a sustained move beyond the 93 threshold could push the rupee further towards the 93.20–93.40 range, while support levels are seen around 92.70 and lower.

Despite the currency’s decline, domestic equity markets staged a strong rebound. Benchmark indices rose sharply, with the Sensex gaining more than 900 points and the Nifty advancing by over 1 per cent, suggesting resilience in investor sentiment.

However, foreign institutional investors remained cautious, continuing their selling streak in Indian equities, with sizeable outflows recorded in recent sessions.

In global markets, oil prices showed some easing after indications from Washington that it may consider relaxing restrictions on Iranian crude exports. This raised hopes of increased supply and some relief for energy markets rattled by the conflict.

Brent crude and US West Texas Intermediate futures both declined during the session, although prices remain significantly elevated compared to earlier in the month. Since early March, crude benchmarks have surged sharply amid geopolitical uncertainty, underscoring the fragile balance in global energy markets.

The rupee’s trajectory is expected to remain closely tied to developments in the region, particularly oil price movements and shifts in global risk appetite, with investors bracing for continued volatility in the near term.

With IANS inputs