Rupee hits all-time low of 92 against US dollar in early trade
Mumbai (PTI): The rupee hit an all-time low of 92.00 against the American currency in early trade on Thursday, weighed down by steady dollar demand and a cautious global mood.
Forex traders said the rupee fell after the dollar index rose from its 4-1/2-year lows, following the FED's announcement that it kept rates unchanged at the conclusion of its first policy decision of 2026.
Moreover, rising geopolitical uncertainty has increased risk aversion, keeping emerging market currencies under pressure.
At the interbank foreign exchange, the rupee opened at 91.95 and lost ground to trade at 92 against the greenback, down 1 paisa from its previous close amid increased month-end dollar demand.
On Wednesday, the rupee settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback.
On January 23, the rupee hit an all-time intraday low of 92 against the US dollar.
"This steady capital drain has kept dollar demand elevated," CR Forex Advisors MD – Amit Pabari said.
"Oil prices have risen more than 4 per cent this week, extending gains for a third consecutive session to levels last seen in late September. The rise followed US warnings of potential military action if Iran fails to reach a nuclear agreement, heightening concerns over supply disruptions," Pabari said.
As a net oil importer, India remains particularly vulnerable to sustained increases in crude prices, Pabari added.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.29 per cent lower at 96.16.
Brent crude, the global oil benchmark, was trading 1.32 per cent higher at USD 69.30 per barrel in futures trade.
"With USD/INR hovering near 92.00 in the NDF market, this level remains a key near-term pivot. A sustained move above it could open the door toward 92.20–92.50, but RBI support and a broadly softer dollar backdrop may cap upside and gradually pull the pair back toward 91.00–91.20," Pabari said.
On the domestic equity market front, Sensex declined 343.67 points to 82,001.01 in early trade, while Nifty dropped 94.2 points to 25,248.55.
Foreign institutional investors purchased equities worth Rs 480.26 crore on Wednesday, according to exchange data.
Meanwhile, India's industrial production grew at an over two-year high pace of 7.8 per cent in December 2025 on the back of robust output in manufacturing, mining and power sectors, according to government data released on Wednesday.
The factory output, measured in terms of the Index of Industrial Production (IIP), expanded by 3.7 per cent in December 2024.
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FTA with EU is for ambitious India: PM Modi
New Delhi (PTI): Prime Minister Narendra Modi on Thursday said the free trade pact with the European Union is for an ambitious India and urged manufacturers to benefit from new markets opening for them.
Modi also said that the nation is coming out of long term pending problems and working towards long term solutions.
Time has come to find solutions and not create hurdles, he said, adding his government is not confined to just files but ensuring last mile delivery of welfare schemes to the people.
"Our priority is always human-centric while taking steps for all-round development of the country," he told reporters in Parliament House complex in his customary briefing at the beginning of the Budget session.
An India full of confidence has emerged as ray of hope for world, he added.
Modi said the Free Trade Agreement (FTA) with the EU is for an ambitious India and urged manufacturers to benefit from new markets opening for them.
"A new market has opened up. It offers quality products to 27 EU member nations," he said in an appeal to manufacturers.
India and the European Union on Tuesday announced the conclusion of negotiations for the FTA, described as 'mother of all deals', under which 93 per cent of Indian shipments will enjoy duty-free access to the 27-nation bloc, while import of luxury cars and wines from the EU will become less expensive.
The deal, concluded after negotiations spanning about two decades, will create a market of about 2 billion people across the world's fourth-largest economy, India, and the second-largest economic bloc, the EU.
Referring to President Droupadi Murmu's address to the joint sitting of both Houses of Parliament on Wednesday, he said it was an expression of confidence of 140 crore citizens and outlined aspirations of the youth.
He also noted that Finance Minister Nirmala Sitharaman is going to table her ninth consecutive budget on Sunday and that she is the only woman finance minister in the country to achieve such a significant feat.
"This is a very glorious chapter of Indian democracy," he added.
