Mumbai

The rupee declined sharply on Monday, falling 39 paise to settle at an all-time low of 95.23 (provisional) against the US dollar amid sustained pressure from global uncertainties, elevated crude oil prices, and continued foreign fund outflows.

Forex traders said the weakness was largely driven by rising geopolitical tensions in the Middle East, which have kept global oil prices elevated and increased concerns over inflation and economic slowdown. Brent crude remained firm near USD 110 per barrel, adding further strain on oil-importing economies like India.

At the interbank foreign exchange market, the rupee opened weaker at 94.95, extended losses during the session, and finally closed at 95.23, marking a decline of 39 paise from its previous close of 94.84 on Thursday. Markets were shut on Friday for Maharashtra Day.

Analysts noted that sustained dollar demand, combined with foreign institutional investor outflows, continued to weigh on the currency. According to market experts, near-term pressure on the rupee is likely to persist, with the USD/INR potentially moving towards the 95.35–95.70 range.

The dollar index rose 0.11 per cent to 98.26, while Brent crude futures gained 1.37 per cent to USD 109.65 per barrel, reinforcing pressure on emerging market currencies.

On the domestic equity front, markets showed resilience, with the Sensex rising 355.90 points to close at 77,269.40 and the Nifty advancing 121.75 points to 24,119.30.

Foreign institutional investors offloaded equities worth ₹8,047.86 crore on Thursday, data showed.

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Separately, government officials indicated that fiscal pressures are expected to persist over the coming quarters, though capital expenditure will remain a priority, according to Expenditure Secretary V Vualnam.