Mumbai

The Indian rupee weakened by 2 paise on Tuesday to settle at a fresh all-time closing low of 95.25 (provisional) against the US dollar, pressured by heightened geopolitical tensions in the Gulf region and rising concerns over global supply disruptions.

Currency market participants said renewed hostilities in West Asia, including attacks on critical infrastructure in the UAE, have triggered risk aversion among investors, prompting a shift away from emerging market assets.

A sharp rise in crude oil prices also continued to weigh on the domestic currency, with Brent crude trading near the USD 110-per-barrel mark — a key concern for energy-import dependent economies such as India. Persistent foreign fund outflows amid global uncertainty further dampened sentiment, traders added.

In the interbank forex market, the rupee opened at 95.30 against the greenback and slipped further during the session to touch an intraday record low of 95.44. It eventually closed at 95.25, down from Monday’s all-time low closing of 95.23.

According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the rupee is likely to remain under pressure due to elevated crude prices, continued importer demand for dollars, and ongoing tensions involving the US and Iran.

He, however, noted that possible intervention by the Reserve Bank of India could offer support at lower levels. He expects the USD/INR spot rate to move within the 95.10–95.55 range in the near term.

Meanwhile, the dollar index, which tracks the US currency against a basket of six major currencies, was trading 0.10 per cent higher at 98.47.

In the commodities market, Brent crude futures were quoted at USD 112.64 per barrel, down 1.57 per cent.

On the domestic equities front, benchmark indices ended lower, with the Sensex declining 251.61 points to close at 77,017.79, while the Nifty slipped 86.50 points to settle at 24,032.80.

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Exchange data showed foreign institutional investors remained net buyers on Monday, purchasing equities worth Rs 2,835.62 crore.