The currency fell 0.2% to 95.55 against the US dollar, breaching its previous all-time low of 95.4325 recorded last week.
Indian equity markets opened on a weak note on Tuesday, extending early losses amid broad-based selling in IT, banking and financial stocks. Sensex was down 525.44 points or 0.60 percent at 75,559.99, while the Nifty slipped 116.55 points or 0.49 percent to 23,699.30. The weak start had been signalled earlier, with GIFT Nifty trading lower at 23,722, indicating subdued sentiment ahead of the session.
Investor sentiment was further pressured by currency weakness, as the rupee slipped to a fresh record low of 95.63 against the US dollar, breaching its previous all-time low amid rising concerns over a weakening ceasefire in the Middle East. The escalation pushed oil prices higher and deepened worries for India’s import-dependent economy.
IT stocks led the decline, with the Nifty IT index falling over 2 percent, while broader markets also remained under pressure as midcap and smallcap indices edged lower. Banking stocks stayed under watch, with analysts flagging continued weakness in momentum indicators and key support levels for Bank Nifty around 54,000.
Persistent foreign institutional investor outflows and elevated crude oil prices further weighed on sentiment, keeping traders cautious in early trade. Since the outbreak of conflict in West Asia earlier this year, which triggered a sharp spike in oil prices, the rupee has remained under sustained pressure, with only brief relief from central bank intervention.
Brent crude, which has surged around 46 percent since the conflict began, rose another 1 percent to $105.22, adding to global market unease as Asian currencies, equities and US equity futures also weakened while Treasury yields climbed.
The scale of the external pressure was underscored by Prime Minister Narendra Modi’s recent appeal urging fuel conservation, reduced imports, and adoption of work-from-home practices. Market participants noted that such remarks, in an already fragile environment, further weighed on sentiment.
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