Rupee hits lifetime low against dollar as oil prices surge

Mangalore Today News Network

New Delhi, Mar 07, 2022: The rupee hit a lifetime low in opening trade on Monday as a sharp surge in international crude oil prices threatened to push up imported inflation and widen the country’s trade and current account deficits, Reuters reported.

 

The partially convertible rupee was trading at 76.92/93 per dollar, after touching 76.96, its weakest level ever. It had closed at 76.16 on Friday, according to a Reuters report.

On 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, PTI report said.

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.

The Indian Rupee started weak this Monday morning as the dollar spiked along with crude oil this morning, said Sriram Iyer, senior research analyst at Reliance Securities.

Iyer added that the Reserve Bank of India (RBI) could be present to curb volatility.
The US dollar and the yen are trading stronger this Monday morning in Asian trade as investors moved towards the safe-haven assets, Iyer noted.The benchmark 10-year bond yield was trading at 6.86 per cent, up 5 basis points on the day.

Meanwhile, global oil benchmark Brent crude futures jumped 9.38 per cent to USD 129.19 per barrel after the United States and European allies mull a Russian oil import ban while delays in the potential return of Iranian crude to global markets fuelled tight supply fears.

Courtesy:India Today