Rupee falls to a new low of 92.63 vs dollar

MUMBAI: The rupee closed at a record low of 92.63 per dollar on Wednesday, breaching its previous low of 92.48 and ending 26 paise lower than Monday's close of 92.37, as the ongoing West Asia conflict and elevated oil prices continued to pressure the currency.Dealers said the fall came despite a rally in equities and was triggered by stop-loss levels, financial year-end dollar demand, and weak trade data. "The rate at which FPIs have been selling in March, unless there is a de-escalation in the Gulf region, outflows could hit $10bn this month - the highest in history," said KN Dey, a forex consultant. He added that under the circumstances there is a possibility of rupee breaching 93.

The rupee has declined over 1.5% since the onset of conflict with nearly $8 billion of foreign portfolio outflows from equities adding pressure. RBI's intervention has helped limit sharper depreciation. Rising crude prices have added to external vulnerabilities. Brent crude has climbed about 40% since the conflict began, raising risks of a wider current account deficit and higher inflation. India imports over 80% of its energy needs, making the currency more sensitive to oil price movements.