Rupee settles at 93.53 against US dollar on March 20; key details here

As per a PTI report, forex traders said that the Indian rupee is under tremendous pressure as surging crude oil prices and a shift toward risk-aversion dented investor sentiments.

Moreover, heightened geopolitical uncertainty risks are driving energy costs higher, which could widen the trade deficit and stoke inflationary pressures, they added.

At the interbank foreign exchange, the local unit opened at 92.92 against the greenback and soon breached the 93-mark for the first time. It kept losing ground through the session and eventually settled at 93.53, down 64 paise from its previous close.

On Wednesday, the rupee slumped 49 paise to close at its previous record low of 92.89 against the US dollar.

Forex markets were closed on Thursday on account of Gudhi Padwa.

Furthermore, all key central banks, including the US Federal Reserve, the European Central Bank (ECB), the Bank of Japan, and the Bank of England, kept their policy rates unchanged as rising crude oil prices raised inflation concerns.

Investors remain concerned about central banks adopting a hawkish policy stance, as crude prices remain elevated amid the ongoing hostilities in West Asia.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.35% higher at 99.58.

Brent crude, the global oil benchmark, was trading 1.84% higher at $110.7 per barrel in futures trade.

Forex traders said the third week of the Iran conflict has triggered severe global energy supply concerns, with the Strait of Hormuz, a crucial waterway for the energy supply located between Iran and Oman, largely closed, crude oil prices are witnessing a sharp uptrend and is causing widespread inflation fears.

On Thursday, the foreign institutional investors (FIIs) sold stocks worth ₹7,558.19 crore, while the domestic institutional investors (DIIs) purchased equities worth ₹3,863.96 crore on a net basis, according to exchange data.

On the domestic equity market front, the SENSEX rebounded from Thursday's crash and was up 325.72 points, or 0.44%, to 74,532.96, while the NIFTY50 advanced by 112.35, or 0.49%, to 23,114.50 points.

During the day, the SENSEX soared by as many as 1,079.15 points to an intraday high of 75,286.39. Meanwhile, the NIFTY50 touched the session’s high of 23,345.15.

Tech Mahindra (3.41%), JSW Steel (3.28%), Tata Steel (3.08%), Coal India (2.99%) and Infosys (2.88%) were the top gainers in the NIFTY50 index.

On the other hand, the top losers were Hindalco Industries (-2.80%), HDFC Bank (-2.15%), Shriram Finance (-1.66%), HDFC Life Insurance Company (-1.40%) and Oil & Natural Gas Corporation (-1.32%).