Rupee Plunges To New All Time Low At 95.63 Per Dollar Amid Crude Pressure
· Free Press Journal
The Indian rupee fell to a record low of 95.63 against the US dollar during early trade on Monday as investors worried about rising crude oil prices and increasing global uncertainty linked to the conflict in West Asia.
Forex traders said the sharp rise in global crude oil prices increased pressure on the rupee.
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India imports over 80 percent of its energy needs. Higher oil prices usually increase India’s import bill and create more demand for dollars, thereby increasing pressure on the domestic currency.
Rupee Crashes 139 Paise To 94.90; Sensex Falls 810 Points, Nifty Drops 225 As Brent Crude Surges To $105.5At the interbank foreign exchange market, the rupee opened weak and fell further during early trading before recovering slightly later in the session.
Analysts said concerns about foreign fund outflows and global risk aversion also weakened the Indian currency.
Investors moved towards safer assets such as the US dollar amid fears of a prolonged geopolitical conflict.
The dollar index, which measures the strength of the US dollar against a basket of major currencies, remained firm in global markets.
RBI Partially Withdraws April 1 Curbs On Rupee Speculation, Allows Non-Deliverable Derivative Contracts With Related Party RestrictionsA stronger dollar generally puts pressure on emerging market currencies such as the rupee.
Meanwhile, crude oil prices remained elevated due to concerns over supply disruptions linked to the West Asia conflict.
Brent crude, the global oil benchmark, was hovering around $105 per barrel after United States President Donald Trump rejected Iran’s peace offer as “stupid”.
Rising oil prices have become a major concern for oil-importing countries, including India.
Experts said continued weakness in the rupee could increase imported inflation in India by making crude oil, electronics, and other imported goods more expensive.
The weakness in the domestic currency also affected investor sentiment in the equity markets, with benchmark stock indices trading lower during the session.
Market participants are now closely watching global developments, crude oil prices, and possible interventions by the Reserve Bank of India to stabilise the currency market.