Mumbai

The Indian rupee extended its losses on Thursday, settling at a fresh record low of 95.73 (provisional) against the US dollar amid persistent dollar strength, rising inflation concerns and elevated global energy prices.

At the interbank foreign exchange market in Mumbai, the rupee opened weaker at 95.74 against the greenback. In volatile trade, the USD/INR pair touched an intraday high of 95.61 and slipped to an all-time low of 95.96 before closing at 95.73, down 7 paise from the previous session.

According to forex analysts, the Indian currency is expected to remain under pressure due to inflationary concerns, foreign fund outflows and continued strength in the US dollar.

The rupee has now emerged as Asia’s worst-performing currency this year, losing more than six per cent so far, weighed down by elevated crude oil prices, global risk aversion and geopolitical tensions in West Asia.

Analysts said disruptions in crude supplies through the Strait of Hormuz have raised India’s import costs, adding pressure on the domestic currency.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said rising inflation in the United States has reduced expectations of a rate cut by the US Federal Reserve, further supporting the dollar.

He added that any intervention by the Reserve Bank of India and recent hikes in gold and silver import duties could provide some support to the rupee at lower levels.

Meanwhile, the dollar index, which tracks the US currency against a basket of six major peers, was trading at 98.51.

Global benchmark Brent Crude was trading 0.50 per cent higher at USD 106.16 per barrel in futures trade.

On the domestic equity front, the BSE Sensex surged 789.74 points to close at 75,398.72, while the Nifty 50 gained 277 points to settle at 23,689.60.

Exchange data showed foreign institutional investors sold equities worth Rs 4,703.15 crore on Wednesday.

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On the macroeconomic front, India’s wholesale inflation rose sharply to 8.3 per cent in April, a 42-month high, driven mainly by a spike in energy prices following disruptions linked to the West Asia crisis.