Lagatar24 Desk
New Delhi, March 7: The rupee fell to a new low in early trading on Monday as a strong rise in international crude oil prices threatened to drive up imported inflation and worsen the country’s trade and current account imbalances.
After touching 76.96, the partially convertible rupee was trading at 76.92/93 per dollar, its lowest level ever. According to a Reuters report, it finished at 76.16 on Friday.
The rupee opened at 76.85 versus the US dollar on the interbank foreign exchange, then fell to 76.98, a drop of 81 paise from the previous finish. The rupee plummeted 23 paise against the US dollar on Friday, closing at 76.17, its lowest 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.
“The Reserve Bank of India (RBI) could be present to curb volatility,” he added.
“The US dollar and the yen are trading stronger this Monday morning in Asian trade as investors moved towards the safe-haven assets,” he further added.
Meanwhile, global oil benchmark Brent crude futures rose 9.38% to USD 129.19 a barrel as the US and its European allies consider imposing a Russian oil import ban, while delays in the prospective return of Iranian crude to global markets fueled supply concerns.
