The Indian rupee plunged to a record low of 77.02 against a US dollar on Monday as a sharp rise in crude oil prices amid the ongoing Russia-Ukraine conflict dampened investors' sentiments.
At the interbank foreign currency market, the rupee hit a low of 77.02 against a US dollar in the intra-day trade on Monday against its Friday's close at 76.16 against a dollar. The Indian rupee has weakened sharply in the last couple of weeks due to a sharp rise in crude oil prices in the international markets.
The Brent crude oil price surged to near $130 a barrel, the highest level since 2008.
Due to high crude oil prices, India's trade and fiscal deficits are set to rise. This will put increasing pressure on the Indian currency.
The rupee declined 81 paise to 76.98 against the US dollar in opening trade on Monday as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to the safe-haven appeal of the greenback.
Forex traders said escalating tensions between Russia and Ukraine kept crude oil prices at an elevated level and heightened worries about domestic inflation and wider trade deficits.
Besides, sustained foreign fund outflows and a lacklustre trend in domestic equities also weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 76.85 against the US dollar, then slipped further to 76.98, registering a decline of 81 paise from the last close.
On Friday, the rupee fell by 23 paise to close at 76.17 against the US dollar, the lowest closing level since December 15, 2021.
(With Agency inputs)
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