Rupee breaches 93 mark against US dollar

The rupee plunged 19 paise to a record low in early trade on Friday, breaching the Rs 93 mark for the first time as a surge in crude oil prices and escalating tensions in West Asia triggered fresh pressure on the currency.Elevated global crude oil prices put further pressure on the local unit, while a positive opening at the domestic equity markets cushioned against a sharper fall, according to forex traders. At the interbank foreign exchange, the local unit opened at 92.92 against the greenback before breaching the 93-mark for the first time to trade at 93.08, down 19 paise from its previous close.Forex markets were closed on Thursday on account of Gudhi Padwa. "The rupee looks vulnerable with the RBI the only one protecting it from further fall by selling dollars.
Brent crude remains firmly above $100 per barrel amid fears of prolonged supply disruptions, a key concern for India, which imports a large share of its oil needs. Higher oil prices increase the country’s import bill, drive up demand for dollars, and put downward pressure on the rupee. Foreign institutional investors (FIIs) have also stepped up selling in Indian equities amid the uncertainty, further adding to pressure. When global funds pull money out, they convert rupees into dollars, accelerating the currency’s decline. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 100.25.