Rupee may slide to 100 per dollar if West Asia conflict persists: Report

The Indian rupee could weaken to a record 100 per dollar or beyond if the West Asia conflict drags on, Bloomberg reported, citing strategists who cautioned that authorities' efforts to slow the currency's roughly 10 per cent decline over the past year may only offer temporary relief.

On the other hand, the rupee gained 15 paise to 94.70 against the US dollar in early trade on Wednesday, supported by positive cues from domestic equity markets and a softer American currency overseas.

At the interbank foreign exchange, the local unit opened stronger at 93.62 but later pared gains to trade at 94.70 against the greenback in early deals, up 15 paise from its previous close. The rupee, however, remained under pressure amid elevated crude oil prices and continued foreign fund outflows.

"Technically, 95 level remains a key psychological pivot and could act as a near-term ceiling. A mild downward bias in USD/INR cannot be ruled out. On the downside, the 92.50–92.80 zone is expected to provide strong support, making it a crucial level to watch in the near term," stated Amit Pabari, managing director at CR Forex Advisors.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.18 per cent lower at 99.79. Brent crude, the global oil benchmark, rose 0.31 per cent in futures trade.

On Monday, the rupee breached the 95 per dollar level for the first time before settling at an all-time low of 94.85 against the greenback. The forex market remained closed on Tuesday on account of Shri Mahavir Jayanti.

(With inputs from PTI)