On Thursday, the Indian rupee closed at a record low of 94.90 against the US dollar, following an intraday low of 95.33. This significant depreciation is largely driven by escalating crude oil prices, which have surpassed $126 per barrel, and persistent foreign portfolio outflows. Traders noted that the Reserve Bank of India (RBI) intervened during trading to stabilize the currency, aiming to keep it above the psychologically significant 95/$ mark. The rupee exhibited high volatility, trading within a range of nearly 50 paise, a stark contrast to its typical 20-25 paise range. Analysts pointed out that public sector oil companies are not fully utilizing the RBI's line of credit for dollar purchases, opting instead to buy dollars from the spot market due to cost considerations. Looking ahead, analysts predict that if the rupee remains between 94.50 and 94.80, strong dollar buying interest will continue from importers, potentially leading to further fluctuations.