Rupee Hits Fresh All-Time Low: The Indian rupee on Monday declined by 46 paise to hit a fresh all-time low of 92.28 against the US dollar, amid the escalating Iran-US war that pushed crude oil prices above
$115 per barrel.
The currency had declined to a record low of 92.3025 last week. An over 20% jump in oil prices triggered a broad-based selloff in Asian stocks and currencies on Monday as investors fretted over the deepening conflict in the Middle East.
Brent crude, the global oil benchmark, was trading higher by a staggering 25.68 per cent at $116.5 per barrel in futures trade as the war between US-Israel and Iran intensified.
A big surge in FII outflows and a crash at the domestic equity market in morning trade put further pressure in the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 92.22 against the US dollar before declining further to 92.28, down 46 paise from its previous close. The rupee had hit an all-time intra-day low of 92.35 on March 4.
The rupee depreciated 18 paise against the US dollar on Friday to close at 91.82 against the American currency.
“The rupee will remain vulnerable to the rising oil prices which have risen by more than 28 per cent since the last closure on Friday. Asian currencies were also lower on Monday,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Rupee might touch 93.00 if oil remains above USD 100 in the coming trading sessions, he added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.66 per cent higher at 99.64.
On the domestic equity market front, the Sensex crashed 2,345.89 points to 76,573.01 in early trade, while Nifty tumbled 708.75 points to 23,741.70.
Foreign institutional investors sold equities worth Rs 6,030.38 crore on a net basis on Friday, according to exchange data.
Meanwhile, India’s forex reserves jumped $4.885 billion to an all-time high of $728.494 billion during the week ended February 27, the Reserve Bank said on Friday.
(With inputs from agencies)
