The rupee opened on a weak note and slumped to an all-time low of 96.25 in early trade on Monday, as elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the domestic unit.
Forex traders said higher crude oil prices, a stronger US dollar, and ongoing geopolitical tensions have together created a difficult environment for emerging market currencies, and the rupee is now clearly reflecting that stress.
At the interbank foreign exchange market, the rupee opened at 96.19, then fell further to 96.25 against the US dollar, registering a fall of 44 paise from its previous close.
On Friday, the Indian rupee crashed below the 96/USD mark before closing at an all-time low of 95.81 against the US dollar.
“For now, elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the rupee. However, the encouraging sign for markets is that both the government and the RBI have already started taking proactive measures to manage the situation before it becomes more uncomfortable,” CR Forex Advisors MD Amit Pabari said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.32, higher by 0.04 per cent due to simmering Iran tensions.
Brent crude, the global oil benchmark, was trading up 1.83 per cent at USD 111.26 per barrel in futures trade.
Meanwhile, within days of levying high customs duties on precious metals, the government on Saturday imposed import curbs on silver by putting the metal under a licensed regime for inbound shipments.
