The rupee on Thursday fell to a record low of 95.3 against the US dollar on account of rising global oil prices and selling in the domestic equity markets, PTI reported.
The Indian currency opened at 95 against the dollar at the interbank foreign exchange market and lost 46 paise to touch a record intraday low of 95.3, the news agency reported. It had recovered to 94.2 against the dollar by the time the day’s trade session closed.
On Wednesday, the rupee depreciated by 20 paise to close at an all-time low of 94.8 against the US dollar.
Global oil prices rose more than 7% on Thursday to a four-year high following a report that United States President Donald Trump was planning for an extended US blockade of Iranian ports.
The benchmark Brent crude touched $126.4 per barrel before falling to $116 per barrel. The price of Brent was $78 per barrel on February 27, a day before the conflict started.
The Wall Street Journal had reported on Tuesday that Trump has instructed US officials to prepare an extended blockade to put pressure on Iranian exports and force Tehran to reach a peace deal.
The uncertainty had led global oil prices to jump more than 3% to $114.8 per barrel on Wednesday.
In India, the stock market tumbled on Thursday, with the benchmark Sensex as well as Nifty falling by over 0.7%.
Exchange data showed that foreign institutional investors had offloaded equities worth more than Rs 2,460 crore on Wednesday, PTI reported.
The US and Israel launched an attack on Iran on February 28, claiming that Tehran’s action posed an existential threat to Israel. Washington acts as a guarantor of Israel’s security.
Iran retaliated by striking US military bases in the region and Israel, and targeted major cities in Gulf countries and some ships.
Iran has also effectively blocked the Strait of Hormuz since the war broke out on February 28. About 20% of the global petroleum supply passes through the maritime chokepoint.
India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz.
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