Mumbai: The rupee plunged 69 paise to hit a record low of 92.18 against the US dollar in early trade on Wednesday, March 4, pressured by a surge in crude oil prices amid rising geopolitical tensions following the escalation of the US-Iran conflict.
Forex traders said the domestic currency remains under heavy strain as Brent crude climbed past the USD 82 per barrel mark in futures trade, dampening investor sentiment.
At the interbank foreign exchange market, the rupee opened at 92.05 and slipped further to 92.18 against the greenback, down 69 paise from its previous close of 91.49 on Monday. The forex market was closed on Tuesday due to Holi.
Traders said the USD/INR pair continues to face pressure as investors shift toward safe-haven assets. Persistent foreign fund outflows from equities and concerns over a widening trade deficit due to costlier imports have also weighed on the currency.
Meanwhile, the dollar index, which measures the US currency against a basket of six peers, was marginally higher by 0.03 per cent at 99.08.
Brent crude, the global oil benchmark, rose 1.01 per cent to USD 82.22 per barrel in futures trade amid the escalating crisis.
Analysts warned that higher global crude prices could sharply raise India’s import bill, given that nearly 85 per cent of the country’s fuel needs are met through imports.
In domestic equities, the Sensex dropped 1,671.39 points, or 2.08 per cent, to 78,567.46 in early trade, while the Nifty fell 502.35 points, or 2.02 per cent, to 24,363.35.
On Monday, foreign institutional investors sold equities worth Rs 3,295.64 crore, according to exchange data.
