New Delhi. The rupee has reached its lowest ever level against the US dollar on Monday. Let us tell you that due to the sharp rise in crude oil prices and increasing demand for dollars, pressure on the rupee has increased. The rupee opened at 92.20 per dollar in early trade, but soon fell to 92.528.
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Big jump in crude oil prices
There was a tremendous rise in the prices of crude oil in the global market. International benchmark Brent crude jumped more than 25 percent to near $ 118 per barrel. The escalating war between America, Israel and Iran has increased volatility in the oil market. Experts say that rising oil prices increase the demand for dollars in importing countries like India, which puts additional pressure on the rupee.
According to Forex traders, selling by foreign institutional investors (FIIs) and huge fall in the stock market have also increased the weakness of the rupee. Earlier on Friday, the rupee had fallen 18 paise and closed at 91.82 per dollar. Meanwhile, the dollar index, which reflects the strength of the US dollar against six major currencies, rose 0.66% to 99.64. Heavy selling was also seen in the domestic stock market. Sensex fell more than 2,400 points in early trade, while Nifty fell 708.75 points to below 24,000.
According to exchange data, foreign institutional investors made a net sale of shares worth Rs 6,030.38 crore on Friday. However, in the meantime, a positive sign is that according to the Reserve Bank of India, the country’s foreign exchange reserves increased by $ 4.885 billion to a record $ 728.494 billion in the week ending February 27.
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