The Indian rupee slumped 69 paise to an all-time low of 92.18 against the US dollar in early trade on Wednesday. The sharp fall comes amid a sharp spike in crude oil prices amid geopolitical tensions following the escalation of the US–Iran conflict, which weighed on investor sentiment. According to forex traders, the domestic currency is under severe pressure due to a sharp spike in crude oil prices, with Brent Crude crossing the USD 82 per barrel level in futures trade in the wake of the Iran crisis, which dented investor sentiments.
“USD/INR continues to move in a strong upward trajectory, recently pushing above the 92.00 zone, reflecting sustained dollar strength against the rupee amid higher crude oil prices and rising geopolitical risk. The broader bias remains constructive as long as the pair holds above the 90.8–91 support region. A sustained hold above 92.20 could trigger further upside toward 92.50–92.80, potentially leading to fresh highs if risk-off flows and oil-driven dollar strength persist,” said Ponmudi R, CEO of Enrich Money.
Rupee opens at 92.05
At the interbank foreign exchange market, the rupee opened at 92.05, then fell to an early low of 92.18 against the American currency, registering a 69-paise fall from its previous close.
On Monday, the rupee had settled at 91.49 against the US dollar. The forex Market was closed on Tuesday due to Holi.
Traders said the USD/INR pair remains under pressure as investors are moving toward safe-haven assets. Moreover, persistent foreign capital outflow from the equities, and fears grow that expensive imports will hurt the trade balance.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 99.08.
Brent crude, the global oil benchmark, was up 1.01 per cent at USD 82.22 per barrel in futures trade, following the escalation of the US-Iran crisis.
