USD vs INR: Rupee hits all-time low again for fifth day in a row; Key reasons explained

USD vs INR: The rupee fell to a fresh all-time low against the US dollar on Monday as rising crude oil prices and weak global sentiment continued to pressure emerging market currencies.

The rupee slipped to 96.18 per US dollar during trade, down around 0.2 per cent from its previous close. The fall also crossed its earlier record low of 96.1350.

Why is rupee falling?

Analysts said pressure on the rupee may continue in the near term as elevated crude oil prices, global uncertainty, and a stronger US dollar remain key risks for the Indian currency.

However, market participants also see some comfort in the fact that both the Indian government and the Reserve Bank of India (RBI) have already started taking proactive steps to manage volatility before the situation worsens further.

“Elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the rupee. However, the encouraging sign for markets is that both the Government and the RBI have already started taking proactive measures to manage the situation before it becomes more uncomfortable,” said Amit Pabari.

Technical outlook

Pabari said technically, the 94.80–95.10 range is likely to act as a key support zone for USDINR, while the 96.00–96.50 band could remain a strong resistance area in the near term.