Last Updated on March 25, 2026 8:44 pm by BIZNAMA NEWS
AMN
The Indian rupee weakened further on Wednesday, closing at 94.28 per US dollar, compared with its previous close of 93.74, as heavy foreign institutional investor (FII) outflows and persistent geopolitical tensions in West Asia weighed on the local currency.
Despite supportive global cues, the rupee failed to gain traction during the session. A decline in international crude oil prices, a relatively softer US dollar and strong gains in domestic equity markets did little to provide relief to the currency.
In the interbank foreign exchange market, the rupee opened at 93.94 against the dollar and moved within a range of 93.86 to 94.13 during the day before settling lower.
The dollar index remained below the ten-month highs recorded earlier this month as global traders assessed the possibility of a potential de-escalation in the conflict involving Iran. However, continued capital outflows from foreign investors kept pressure on the Indian currency.
Meanwhile, domestic equity markets posted a strong rally. The benchmark Nifty 50 climbed 1.72 per cent to 23,306.45, while the Sensex advanced 1.63 per cent to 75,273.46, supported by easing oil prices and hopes of reduced geopolitical tensions in the Middle East.
Market analysts said that although lower crude prices and a softer dollar typically support emerging market currencies, persistent FII outflows and global uncertainty continue to keep the rupee under pressure.
