Rupee closes at all-time low of 95.23 against US dollar

The Indian Rupee on Monday, May 4, fell by 39 paise to close at an all-time low of 95.23 (provisional) against the US dollar. This was majorly due to the ongoing tensions in the Middle East causing volatility in global markets and keeping oil prices high, besides raising fears of inflation and economic slowdown.

According to forex traders, Brent oil is hovering around $110 per barrel and maintaining pressure on oil -importing economies like India, PTI reported.

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Further, investor sentiments were dented by various factors like unabated foreign capital outflows amid rising geopolitical uncertainties.

Notably, the rupee opened at 94.95 against the US dollar at the interbank foreign exchange market, but soon lost ground and settled at 95.23 (provisional), marking a 39 paise fall over its previous close.

Earlier, the rupee had settled at 94.84 against the American currency on Thursday. On Friday, the stock exchanges and currency markets remained shut due to Maharashtra Day.

Dilip Parmar, Senior Research Analyst, HDFC Securities, said the Indian rupee has hit a record low as the dollar recovered and crude oil prices held firm.

“This ongoing surge in oil prices, combined with foreign fund outflows, is putting a visible strain on India’s trade balance and broader economy,” PTI quoted Parmar as saying.

On the other hand, the dollar index that gauges the greenback’s strength against a basket of six currencies was trading at 98.26, up by 0.11 per cent.