Rupee Slips as Global Pressures Intensify

The Indian rupee dropped below the 96 mark due to rising crude oil prices, a strong dollar, and U.S. policy remarks. Forex traders highlight the impact of foreign capital outflows and global uncertainties. Despite challenges, India's exports grew 13.78% in April, while imports rose by 10%.

The Indian rupee experienced a dip below the 96 mark during intraday trade on Friday, driven by heightened crude oil prices, a robust dollar, and decisive statements from U.S. policy makers. Forex traders report the USD/INR pair is under significant pressure, exacerbated by consistent foreign capital outflows and insufficient net FDI inflows.

At the interbank foreign exchange, the rupee opened at 95.86, later dropping to a record low of 96.14. This marked a decrease of 50 paise from its previous close, despite closing with a slight recovery at 95.64 against the US dollar on Thursday.

The country saw its exports surge by 13.78% in April, reaching USD 43.56 billion, alongside a 10% year-on-year rise in imports. Nonetheless, the trade deficit stood at USD 28.38 billion, as noted by Commerce Secretary Rajesh Agrawal. The period also saw Asian currencies decline following U.S. policy-maker comments and the underwhelming Trump-Xi meeting.