Kamal Ghorui
The rupee slumped to a record closing low of 92.35 (provisional) against the US dollar on Monday, losing 53 paise during the session amid a sharp spike in global crude oil prices and a strengthening US currency as tensions escalated in the Middle East, reported new agency PTI.Forex traders said heavy foreign fund outflows and intense selling in domestic equity markets added further pressure on the Indian currency.At the interbank foreign exchange market, the rupee opened at 92.22 and briefly strengthened to 92.15, but later weakened steadily through the session before settling at its all-time closing low of 92.35 (provisional), down 53 paise from its previous close.On Friday, the rupee had depreciated 18 paise to close at 91.82 against the US dollar.“The rupee opened sharply lower, hitting a fresh record low of 92.35 on weak global markets and an overnight surge in crude oil prices. Oil prices surged around 25 per cent in the Asian session. Strong dollar and FII outflows also pressured the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.“We expect the rupee to trade with a negative bias on weak global market sentiments and a strong dollar amid geopolitical tensions in the Middle East. However, any intervention by the central bank may support the rupee at lower levels,” he said, adding that the USD-INR spot price is expected to trade in the range of 92-92.80.Meanwhile, Brent crude, the global oil benchmark, was trading 15.18 per cent higher at $106.8 per barrel in futures trade, as the war between US-Israel and Iran intensified.The dollar index, which measures the greenback against a basket of six major currencies, was up 0.35 per cent at 99.33.In the domestic equity market, the Sensex plunged 1,352.74 points to close at 77,566.16, while the Nifty tumbled 422.40 points to 24,028.05.Foreign institutional investors (FIIs) were net sellers of equities worth Rs 6,030.38 crore on Friday, according to exchange data.Separately, the Reserve Bank of India said India’s forex reserves rose by $4.885 billion to a record $728.494 billion during the week ended February 27.
