The rupee plunged 32 paise on Thursday to a record low of 81.94 against the US dollar amid soaring crude oil prices, reported PTI.
The rupee opened on a positive note with 81.52 against the US dollar at the interbank foreign exchange market on Thursday but ended at 81.94.
“A significant surge in crude oil prices is leading to a lot of dollar demand by oil importers [in India] and that is weighing on the domestic currency,” said Sugandha Sachdeva, vice president of commodity and currency research at Religare Broking, had told Reuters on Monday.
On Thursday, global oil benchmark Brent crude futures dropped 16 cents, or 0.2%, to $93.21 per barrel after settling 1.7% up in the previous session, reported Reuters.
“Rupee, after appreciating marginally on Tuesday, is again starting to come under pressure,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, told PTI. “The dollar strengthened after services Purchasing Managers’ Index and private payrolls numbers from the US came in better than estimates.”
Meanwhile, domestic equity market closed on Thursday with some gains. BSE Sensex ended at 157 points, or 0.3%, up at 58,222, while NSE Nifty gained 58 points, or 0.3%, to settle at 17,332.
On September 23, the rupee had depreciated to 81.23 against the US dollar. It was the first time that it had breached the 81-mark.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!