The rupee slipped below the crucial 96-mark and touched a record low of 96.14 against the US dollar in intraday trade on Friday amid elevated crude oil prices, a strong dollar and hawkish remarks from US policymakers.
Forex traders said the USD/INR pair remains under significant pressure due to persistent foreign capital outflows and weak net FDI inflows, which are weighing on India’s balance of payments.
Market participants added that ongoing global uncertainties, relatively high market valuations and the absence of strong AI-led investment opportunities have further impacted capital flows into emerging markets like India.