Rupee Hits Lifetime Low Against Dollar
- The plunge is the first of its kind.
- The plunge is attributed to the surge in global crude oil prices after US and allies mull a ban on Russian oil trade.
- The rupee traded at 1per cent weaker after touching 76.96 against one dollar.
New Delhi: The Indian currency plummeted significantly for the first time in the history on Moday morning 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, officials reported
The rupee was trading nearly 1 per cent weaker at 76.92 per dollar after touching 76.96, its weakest level ever. On Friday, the currency fell to close at 76.17 against the US dollar, its lowest closing level since December 15, 2021.The decline was recorded after a global surge in crude oil prices.
The dip was recorded as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to the greenback’s safe-haven appeal.Forex traders said escalating tensions between Russia and Ukraine kept crude oil prices elevated and heightened worries about domestic inflation and broader trade deficits.
Oil prices soared above $130 since 2008, after a US and European ban on Russian oil imports risk and delays in Iranian talks fuelled tight supply fears.