The rupee slipped 13 paise to close at 96.88 against the US dollar, a drag that came on top of a 0.16‑point rise in the dollar index to 102.40. The move followed a decline from Wednesday's 96.75 close.
Opening at 96.71, the interbank market saw the rupee touch a low of 96.79 and a high of 96.65 before settling at the 96.88 close. The narrow intraday swing underscores the currency's vulnerability amid global risk‑aversion.
RBI Governor Sanjay Malhotra assured traders that the central bank would intervene to stabilise the rupee and curb excessive volatility. Analysts noted that any RBI action could support the rupee at lower levels, especially if the US Fed's October rate‑hike outlook improves.
Brent crude futures climbed 4.20% to $104.41 per barrel as geopolitical tensions in the Middle East threaten supply lines, adding further pressure on the rupee. The oil rally feeds a stronger dollar and heightens global risk‑aversion.
On the domestic equity front, the Sensex fell 1,045.46 points to 71,593.24 and the Nifty slipped 371.25 points to 22,231.80. Foreign institutional investors net‑offloaded ₹6,121.37 crore of equities Wednesday, a sign of heightened caution.
Market watchers now look to the upcoming US weekly unemployment claims and the RBI’s next policy meeting for clues. If the RBI confirms an intervention, the rupee could find a clearer direction ahead of the next quarter’s earnings season.