Mumbai Mumbai, The rupee fell 67 paise to close at an all-time low of 92.16 against the US dollar on Wednesday due to rising crude oil prices after the Iran crisis. Forex traders said the dollar index crossed the 98 level due to risk-off situation across the world amid the US-Iran crisis, putting further pressure on the rupee.
Besides, heavy selling in the domestic equity market and outflow of foreign funds dragged the Indian currency further, he said. At the Interbank Foreign Exchange, the rupee opened at 92.05 and touched an all-time low of 92.35 against the dollar. The currency ended the session at an all-time low of 92.16 (provisional) against the dollar, a huge fall of 67 paise from the previous closing level. On Monday, the rupee had fallen by a massive 41 paise to close at 91.49 against the US dollar. The Forex market was closed on Tuesday due to Holi.
Anil Kumar Bhansali, treasury head and executive director, Finrex Treasury Advisors LLP, said, “The sharp increase in fighting in the Middle East and the resulting surge in oil prices have reduced investor risk appetite. Higher oil prices add to inflation concerns and fiscal pressure on India (a major oil importer), leading to a selloff in bonds and a rise in yields.”
Meanwhile, the dollar index, which measures the dollar’s strength against six currencies, was trading 0.23 per cent lower at 98.82. “The dollar index comfortably crossed the 98 mark amid risk-off conditions across the globe, with the stock and bond markets badly hit, along with gold and silver, dominated by the dollar,” Bhansali said. Global oil benchmark Brent crude rose 1.29 per cent to Rs 82.46 per barrel in futures trade following US attacks on Iran and threats to energy flows through the Strait of Hormuz due to Iran’s retaliatory measures. In the domestic equity market, Sensex fell 1,122.66 points to 79,116.19, while Nifty fell 385.20 points to 24,480.50.
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