Mumbai, March 4: The rupee slumped 56 paise to close at an all-time low of 92.05 against the US dollar on Wednesday, weighed down by spiking crude oil prices in the wake of the Iran crisis.
Forex traders said the dollar index crossed 98 levels on the risk-off situation prevailing all around the globe amid the US-Iran crisis, further pressurising the rupee.
Massive selling in domestic equity markets and withdrawal of foreign funds further dragged the Indian currency down, they said. Foreign investors sold equities worth Rs 8,752.65 crore on a net basis on Wednesday, according to exchange data.
At the interbank foreign exchange, the rupee opened at 92.05 and touched an all-time intraday low of 92.35 against the greenback. The currency ended the session at an all-time low of 92.05 against the dollar, registering a steep loss of 56 paise from the previous closing level.
On Monday, the rupee saw a steep loss of 41 paise to settle at 91.49 against the US dollar.
The forex market was closed on Tuesday on account of Holi.
“A sharp escalation in Middle East conflict and the consequent spike in oil prices have reduced investor risk appetite. Higher oil prices increase inflation concerns and fiscal pressure on India (a major oil importer), leading to selling in bonds and rising yields,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.23 per cent lower at 98.82. (PTI)
