Rupee sinks 23 paise to all-time low of 93.76 vs US dollar as global risks mount

The rupee weakened by 23 paise to settle at an all-time low of 93.76 against the US dollar on Tuesday, pressured by a strengthening greenback and elevated global crude oil prices that dampened investor sentiment.Forex traders said continued foreign fund outflows amid uncertainties linked to the Middle East crisis also weighed on the domestic currency, PTI reported.At the interbank foreign exchange market, the rupee opened at 93.66 against the dollar and remained volatile through the session before closing at 93.76, down 23 paise from the previous close.The local unit had breached the 94 mark against the US dollar for the first time on Monday, though it eventually ended flat at 93.53.“Persistent FPI outflows continue to pressure INR. A strong US dollar is keeping emerging market currencies weak, and the INR has weakened by about 4.5 per cent during the month. The rupee range for Wednesday is expected to be 93.65 to 94.25,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.US President Donald Trump on Monday said Washington was holding talks with a “respected” Iranian leader and claimed the Islamic Republic was keen to reach a deal to end the conflict. He also extended the deadline for Iran to reopen the Strait of Hormuz by five days.However, Iran denied the claims and ongoing hostilities in the region added to uncertainty, pushing up global crude prices.The dollar index, which measures the US currency’s strength against a basket of six peers, was trading 0.23 per cent higher at 99.18.Brent crude, the global oil benchmark, was quoting 1.45 per cent lower at USD 101.4 per barrel in futures trade.In domestic equities, benchmark indices ended sharply higher. The BSE Sensex surged 1,372.06 points, or 1.89 per cent, to close at 74,068.45, while the NSE Nifty rose 209.65 points, or 0.93 per cent, to 22,722.30.Foreign institutional investors (FIIs) offloaded equities worth Rs 8,009.56 crore on a net basis on Tuesday, according to exchange data.