The Indian rupee weakened and reached to a record low of 95.73 (provisional) against the US dollar on Thursday, May 14, amid a strong dollar and worries over inflation.
According to forex traders, the rupee is expected to trade with a negative bias due to inflation concerns and the strength of the US dollar in the overseas market.
This comes as the ongoing West Asia conflict as well as the blockade of the Strait of Hormuz have disrupted crude petroleum imports into India. Further, the sharp rise in crude prices has made fuel imports costlier.
As per traders, the rupee has become the worst-performing currency in Asia for the year, registering a loss of more than 6 per cent so far this year.
At the interbank foreign exchange market, the rupee opened lower at 95.74 against the American currency. The USD/INR pair witnessed an intra-day high of 95.61 and an all-time intraday low of 95.96 against the greenback before settling at 95.73 (provisional), down 7 paise from its previous close, PTI reported.
Earlier on Wednesday, it came down to an all-time low of 95.80 against the US dollar, and later settled at 95.66 against the greenback.
The dollar index that gauges the greenback’s strength against a basket of six currencies, was trading at 98.51, down by 0.01 per cent.
Also, brent crude, the global oil benchmark, was trading higher by 0.50 per cent at USD 106.16 per barrel in futures trade.