Mumbai: The Indian rupee hit its lowest level against the US dollar as it opened at ₹76.96 on Monday compared to a close of ₹76.17 on Friday. The rupee’s previous low was at ₹76.91 in April 2020.
India imports more than two-thirds of its oil needs and higher prices are likely to boost its trade and current account deficit and import inflation.
The partially convertible rupee was trading at 76.86/87 against the dollar at 0545 GMT after touching its weakest level at 76.96. It closed on Friday at 76.16.
The rupee broke its previous record low of 76.9050 on April 22, 2020, which was hit by the
The Reserve Bank of India usually sells dollars through public sector banks to check the sharp movement in the rupee. Since forex reserves stood at $631.53 billion at the beginning of March, traders feel that it has enough firepower to prevent a very sharp fall in the currency.
The major concern, however, is whether the RBI will be forced to act to control inflation by raising interest rates in the aftermath of the Ukraine crisis.
So far, the RBI has reiterated its commitment to reviving economic growth and keeping policy accommodative. Oil prices soared more than 9%, touching their highest since 2008.
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