Mumbai

The Indian rupee on Monday fell sharply to close at a record low of 92.21 against the US dollar, declining 39 paise during the day as rising crude oil prices and a stronger dollar weighed heavily on the domestic currency.

According to forex traders, escalating tensions in West Asia have pushed global oil prices higher, raising concerns about India’s import bill and potential inflationary pressures.

At the interbank foreign exchange market, the rupee opened weaker at 92.22 against the dollar. It briefly recovered to 92.15 in early trade but soon lost momentum and slipped further during the session, touching an intraday low of 92.35.

The local unit eventually settled at 92.21, marking a decline of 39 paise compared with its previous close of 91.82 on Friday.

Market participants attributed the sharp fall to a spike in global crude prices and sustained strength in the US Dollar Index, which measures the dollar’s performance against a basket of major currencies.

Dilip Parmar, Research Analyst at HDFC Securities, said the rupee weakened in line with other Asian currencies as international oil prices crossed USD 100 per barrel for the first time since 2022.

He warned that rising energy costs could significantly affect India’s trade balance, economic growth and inflation, given the country’s heavy reliance on imported crude oil.

Parmar added that amid ongoing geopolitical tensions, the dollar-rupee pair may remain firm, with resistance around the 93.00 level and support near 91.80.

In the commodities market, Brent crude oil — the global benchmark — surged 10.93 per cent to USD 102.82 per barrel in futures trading as the conflict involving the United States, Israel and Iran intensified.

The US Dollar Index was also higher, rising 0.29 per cent to 99.27.

Domestic equity markets mirrored the negative sentiment, with the BSE Sensex dropping 1,352.74 points to close at 77,566.16. The NSE Nifty 50 also fell sharply, losing 422.40 points to end at 24,028.05.

Foreign investors remained heavy sellers in the market, with Foreign Institutional Investors offloading equities worth ₹6,345.57 crore on a net basis during the session, according to exchange data.

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Meanwhile, India’s foreign exchange reserves rose by USD 4.885 billion to reach a record high of USD 728.494 billion for the week ended February 27, according to data released by the Reserve Bank of India.Top of FormBottom of Form