The rupee opened at 94.47 in the interbank market before slipping to 94.50 against the US dollar on Thursday. This 12-paise decline reversed the previous day’s 53-paise gain, which had seen the currency close at 94.38.
The pressure came from two fronts: Brent crude futures rose 1.58% to $110.54 per barrel, and Dalal Street bled. The BSE Sensex dropped 642.51 points to 73,067.18, while the NSE Nifty50 fell 241.35 points to 22,570.90.
Despite the domestic equity weakness, the dollar’s own softness provided a floor. The dollar index fell 0.21% to 101.56, and lower US treasury yields helped limit the rupee’s fall.
Anuj Choudhary, research analyst at Mirae Asset Sharekhan, sees a slight positive bias for the INR. He pointed to IPO-related foreign inflows and reports that Russia is ready for new peace talks as supportive factors.
Anindya Banerjee, head of commodity and currency research at Kotak NEO, noted the rupee remains finely balanced within the 94-97 range. He warned that if portfolio selling accelerates or crude makes a decisive move toward $120, that balance will be tested.
Market participants are now tracking the weekly US unemployment claims data for further direction. While FIIs were net buyers of ₹1,022.32 crore on Wednesday, the current session’s equity slide suggests caution is returning.