Rupee loses ground as oil shock, market sell-off intensify
In Short
At the interbank foreign exchange market, the rupee opened at 94.80, also its intra-day high, against the US dollar.
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Rupee loses ground as oil shock, market sell-off intensify
Mumbai: The rupee slumped by 34 paise to close at 95.08 against the American currency on Wednesday as crude prices crossed the $100 per barrel mark, stoking concerns over inflation and high forex outflows.Weak equity markets and FII outflows also pressurised the rupee, forex traders said.
Brent crude futures surpassed $100 a barrel for the first time in almost six weeks after attacks on oil facilities and ships in West Asia threatened to weaken the already strained supply chain amid the US-Iran tensions. Brent crude was trading higher by 2.94 per cent at $100.73 per barrel.
At the interbank foreign exchange market, the rupee opened at 94.80, also its intra-day high, against the US dollar. The local unit fell to an intraday low of 95.22 as crude oil prices surged. The rupee settled at 95.08, down 34paise from its previous close of 94.74.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.84, higher by 0.05 per cent.
