Rupee Hits All-Time Low Again: Depreciates to 91.99 Against US Dollar

• The Indian rupee depreciated by 31 paise, settling at 91.99 against the US dollar on Wednesday, marking its lowest closing level for the second time in a week.
• The depreciation was primarily driven by increased month-end demand for the US dollar and ongoing geopolitical tensions.
• Initially, the rupee opened higher at 91.60, touching an early high of 91.50, due to a softened US dollar index and a trade breakthrough with Europe.
• The rupee had previously closed at 91.99 on January 23, when it also hit an intraday low of 92 against the US dollar.
• Despite the rupee's fall, the domestic equity market saw gains, with Sensex and Nifty closing higher, and Foreign Institutional Investors turning net buyers.

Why It Matters: The rupee hit a new all-time low of 91.99 against the US dollar due to strong demand for the greenback.