Rupee hits all-time low vs dollar on sharp surge in oil prices

In early trading on Monday, the rupee reached a new all-time low as a strong rise in international crude oil prices threatened to drive up imported inflation and worsen the country's trade and current account deficits.

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.

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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, according to a PTI report.

The rupee plummeted 23 paise against the US dollar on Friday, closing at 76.17, its lowest level since December 15, 2021.

Why is the Rupee down?

According to experts, the Indian rupee began to decline on Monday morning as the dollar surged alongside crude oil.

The US dollar and the yen are trading higher in Asian trade this morning as investors flock to safe-haven assets.

The benchmark 10-year bond yield was 6.86 percent, up 5 basis points from the previous day.

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.

(With inputs from agencies)