Oil prices dent rupee; falls below 73/$

High crude oil prices and fears over a hike in key domestic lending rates pulled the Indian rupee to a new record low of over 73 per US dollar on Wednesday.

The Indian rupee opened at a record low of 73.25 per US dollar surpassing the previous low of 72.98 per dollar, which it had touched on September 18.

It slipped further to — 73.42 — its lowest-ever mark — against the greenback at the Inter-Bank Foreign Exchange Market.

Around 11.35 a.m., the rupee recovered a bit to 73.07 per US dollar mark.

“The rupee has made a new record low today on the back of consistent rise in the crude oil prices. The sharp rise in the crude oil prices along with steep depreciation in the rupee might push inflation higher in the coming months,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers, told IANS.

“Sharp volatility in the domestic equities and steep FIIs outflows from equity and debt segments keeping sentiments bearish for the rupee. The dollar index is hovering around multi-months high as the Federal Reserve continues to raise interest rates aggressively.”

Leave a Reply

Your email address will not be published. Required fields are marked *