Hyderabad: The Rupee fell to a record low, breaching the 95 mark against the US dollar for the first time in trading history on Monday.
During the session, the currency touched an all-time low of 95.22. However, it later recovered slightly to close at 94.70, gaining 15 paise by the end of the day.
Forex analysts attributed the fall to multiple factors. These included a surge in Brent crude prices to $115 per barrel, a stronger dollar, losses in domestic equity markets and heavy selling by foreign institutional investors.
Rupee volatility driven by global and domestic factors
At the start of trading, the currency opened on a positive note. It strengthened to 93.57 following an RBI circular.
However, strong demand for dollars from corporates triggered a sharp decline. As a result, it slipped rapidly to its intraday low.
Throughout the session, the currency witnessed high volatility. It moved within a wide range of 165 paise during the day.
Since the onset of the West Asia conflict on the 28th of last month, the currency has declined by 4.1 percent. In the current financial year 2025-26, it has fallen by 9.88 percent.
Analysts said this marked the steepest annual decline in the past 14 years since 2011-12. They warned that if crude prices remained elevated, it could weaken further towards the 100 mark against the dollar.