Rupee Hits Record Low As Oil And Dollar Index Strengthen

Rupee hit a record low of 85.846 against the dollar after opening at 85.82. The currency had strengthened by 4 paise against the dollar on Tuesday. It had closed at Rs 85.72.

"Indian rupee pared all its gains of yesterday up to 85.65 and was to open at 85.80, with a close watch on what RBI does at these levels after buying dollars yesterday at 85.65," said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.

Bhansali expects the rupee to trade in Rs 85.65 to 85.90 range on Wednesday, with exporters on the watchful side for hedging. The dollar is still a 'buy on dips' for importers.

The dollar index followed the US yields as it moved higher on stronger US data, paring US rate cuts in 2025.

US Dollar Index stood at 108.57 and was 0.03% higher. While Brent Crude price was at $77.61, up 0.56%.

Brent oil prices rose on Wednesday on tighter supplies from Russia and OPEC members, while data from US showed an unexpected increase in US job openings pointed to expanding economic activity and consequently growth in oil demand.