Rupee in ICU ahead of Economic Survey, falls to 92, down 2% so far this year:The rupee opened at 91.95 per dollar in the interbank forex market and slipped to 92 due to increased demand for the dollar at the end of the month.

News Topical, Digital Desk : The Indian rupee has seen its biggest ever decline, with the Economic Survey being presented in Parliament just before the Union Budget. In early trading on Thursday, the rupee fell to a historic low of 92.00 against the US dollar. Continued strong dollar demand and a global cautious sentiment have put pressure on the domestic currency.

Why such a huge fall in the rupee?

According to forex traders, rising geopolitical uncertainties have increased risk aversion among investors, directly impacting emerging market currencies. The rupee opened at 91.95 per dollar in the interbank forex market and slipped to 92 as demand for the dollar increased at the end of the month.

A day earlier on Wednesday, the rupee had fallen by 31 paise to close at 91.99, while on January 23, it had reached the level of 92 for the first time. Meanwhile, the dollar index, which shows the strength of the dollar against six major global currencies, fell by 0.29 percent to 96.16.

Stock market crashes

The domestic stock market also showed weakness, with the Sensex falling 343.67 points to 82,001.01 in early trading, and the Nifty slipping 94.2 points to 25,248.55. Meanwhile, in the international market, Brent crude prices rose 1.32 percent to $69.30 per barrel. However, according to stock market data, foreign institutional investors (FIIs) remained bullish on Wednesday, purchasing shares worth a net ₹480.26 crore.

Analysts said the rupee had opened higher amid weakness in the dollar index but slipped to its lowest level at the end of the month due to dollar demand and poor investor sentiment.