Rupee Hits Historic Low of 95.22 Against US Dollar
Currency Decline Driven by Oil Prices and Geopolitical Tensions
Mumbai, March 30 – The Indian rupee experienced a significant downturn on Monday, hitting a historic low of 95.22 against the US dollar in intra-day trading. Initial gains following a Reserve Bank of India (RBI) decision to reduce overnight USD open position were quickly erased as rising oil prices and ongoing geopolitical concerns exerted continued pressure on the currency.The rupee opened at 93.62 against the US dollar and subsequently rose to 93.57, registering a gain of 128 paise from its previous close. However, the currency failed to maintain this momentum, ultimately falling to an all-time low of 95.22. On Friday, the rupee had plunged by 89 paise, closing at a historic low of 94.85 against the US dollar.
Forex traders attributed the downward pressure to the elevated dollar index and surging crude oil prices. The USD/INR pair is facing pressure from the dollar index, which remained above the 100 mark, limiting any recovery. Rising geopolitical tensions also contributed to the increase in Brent crude futures, which rose by 2.60 per cent to USD 115.50 per barrel.
The domestic equity market also experienced a downturn, with the Sensex declining by 1,733.78 points to 71,849.44 and the Nifty falling by 528.45 points to 22,291.15. Foreign institutional investors sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.
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