New Delhi. The Indian currency fell 35 paise to its lowest level of 95.63 (provisional) against the US dollar on Tuesday as risk aversion increased in the global market amid rising tensions between the US and Iran in West Asia.
The rupee opened at 95.57 in the interbank foreign exchange market today and fell to an all-time low of 95.74 during trading.
It closed at 95.63 (provisional), down 35 paise from its previous close. On Monday also, the rupee fell by 79 paise and closed at a record low of 95.28.
Forex traders said that the market sentiment has been affected by the deepening of the crisis that has been going on in West Asia for the last 10 weeks and fears of impact on the supply of crude oil and gas. Uncertainty has increased further due to US President Donald Trump’s rejection of Iran’s peace proposal.
Meanwhile, the dollar index, which reflects the dollar’s position against six major currencies of the world, rose by 0.33 percent to 98.28.
The future price of global oil standard Brent crude has increased by 3.09 percent to $ 107.43 per barrel. Due to this, fears of supply disruption and increase in energy costs have increased.
According to analysts, there is continuous pressure on the Indian currency rupee due to the rise in crude oil prices and the strength of the dollar. However, possible intervention by the Reserve Bank of India (RBI) at lower levels may provide some support.
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