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New Delhi. The Indian rupee reached its lowest ever level against the US dollar on Monday. Pressure on the rupee increased due to sharp rise in crude oil prices and increasing demand for dollar. The rupee opened at 92.20 per dollar in early trade, but soon fell to 92.528. There was a tremendous rise in the prices of crude oil in the global market. International benchmark Brent crude jumped more than 25% to near $118 a barrel. The escalating war between America, Israel and Iran has increased volatility in the oil market. Experts say that rising oil prices increase the demand for dollars in importing countries like India, which puts additional pressure on the rupee. According to market experts, there is pressure on the rupee due to increasing demand for dollars from importers and oil companies. Analysts say that if there is much volatility in the market, the Reserve Bank of India (RBI) can intervene and handle the situation. According to Ponmudi R, CEO of Enrich Money, the dollar-rupee pair is currently trading in the range of 92.30-92.32, near its new all-time high. He says that due to increasing tension in West Asia and rising crude oil prices, investors are turning to the dollar as a safe investment. He said that oil importers like India are continuously putting pressure on the expensive crude oil and strong dollar rupee for the country. Based on technical charts, the trend currently appears strong in favor of the US dollar.
Selling by foreign institutional investors continues
According to Forex traders, selling by foreign institutional investors (FIIs) and huge fall in the stock market have also increased the weakness of the rupee. Earlier on Friday, the rupee had fallen 18 paise and closed at 91.82 per dollar.
Big decline seen in domestic stock market
Meanwhile, the dollar index, which reflects the strength of the US dollar against six major currencies, rose 0.66% to 99.64. Heavy selling was also seen in the domestic stock market. Sensex fell more than 2,400 points in early trade, while Nifty fell 708.75 points to below 24,000. According to exchange data, foreign institutional investors made a net sale of shares worth Rs 6,030.38 crore on Friday. However, in the meantime, a positive sign is that according to the Reserve Bank of India, the country’s foreign exchange reserves increased by $ 4.885 billion to a record $ 728.494 billion in the week ending February 27.
