The Indian rupee plunged to a record low of 77.02 against a US dollar on Monday as a sharp rise in crude oil prices amid the ongoing Russia-Ukraine conflict dampened investors’ sentiments.
At the interbank foreign currency market, the rupee hit a low of 77.02 against a US dollar in the intra-day trade on Monday against its Friday’s close at 76.16 against a dollar. The Indian rupee has weakened sharply in the last couple of weeks due to a sharp rise in crude oil prices in the international markets.
The Brent crude oil price surged to near $130 a barrel, the highest level since 2008.
Due to high crude oil prices, India’s trade and fiscal deficits are set to rise. This will put increasing pressure on the Indian currency.