Rupee Hits Historic Low Amidst Global Uncertainties
The rupee reached a new low against the US dollar, pressured by rising oil prices due to West Asia conflict, a high dollar index, and significant FII outflows. The Sensex and Nifty dropped sharply, while inflation saw an increase, primarily caused by elevated food prices.
- Country:
- India
The rupee plummeted to an unprecedented intra-day low of 92.44 against the US dollar on Friday, sliding 19 paise due to escalating global oil prices amidst the tense West Asia situation. This financial downfall occurred as international markets remained edgy.
Contributing factors to the rupee's decline included a stronger greenback, significant foreign institutional investor (FII) outflows, and ongoing sell-offs in local equity markets, as reported by forex traders. Opening at 92.33, the rupee continued to lose stability, reaching a historic low and closing at 92.25, down another 24 paise.
Simultaneously, major domestic equity indices, Sensex and Nifty, dropped 917.69 points and 308.40 points, respectively. On a broader economic scale, retail inflation climbed to 3.21% in February, largely attributed to increased food prices according to government figures.
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