Rupee plummets 84 paise to all-time low of 77.01 against US dollar amid Ukraine crisis

The rupee tanked 84 paise to shut at its lifetime low of 77.01 (provisional) towards the US greenback on March 7 as intensifying geopolitical dangers as a result of Russia-Ukraine battle pushed traders to secure haven property.

Foreign exchange merchants stated escalating tensions between Russia and Ukraine stored crude oil costs at an elevated stage and heightened considerations about home inflation and wider commerce deficits.

Sustained overseas fund outflows and a lacklustre pattern in home equities additionally weighed on investor sentiment.

On the interbank overseas trade market, the rupee opened at 76.85 towards the American foreign money however misplaced floor and settled for the day at a file low of 77.01, down 84 paise from the earlier shut.

On Friday, the rupee fell by 23 paise to shut at 76.17 — its lowest closing stage since December 15, 2021.

“The Indian rupee has plummeted to a lifetime low towards the US greenback because the deepening Russia-Ukraine battle has sapped danger urge for food available in the market whereas prompting safe-haven flows into the US greenback,” stated Sugandha Sachdeva, Vice President – ​​Commodity and Forex Analysis, Religare Broking Ltd.

Moreover, the parabolic rise in crude oil costs in direction of multi-year highs and spiraling commodity costs are fueling inflationary dangers, which is a key headwind for the rupee-dollar trade price, Sachdeva added.

In accordance with Mr. Sachdeva, the general pattern for the Indian rupee is skewed in direction of the draw back and “a convincing shut beneath the 77 mark would pave the way in which for additional draw back in direction of 77.50 mark in close to time period, whereas we envisage the native foreign money to check the 79 mark from a medium-term perspective”. In the meantime, the greenback index, which gauges the buck’s power towards a basket of six currencies, was buying and selling 0.46% larger at 99.09.

International oil benchmark Brent crude futures jumped 6.55% to $125.85 per barrel.

On the home fairness market entrance, the 30-share Sensex ended 1,491.06 factors or 2.74% decrease at 52,842.75, whereas the broader NSE Nifty plunged 382.20 factors or 2.35% to fifteen,863.15.

Overseas institutional traders remained internet sellers within the capital market on Friday as they offloaded shares value ₹7,631.02 crore, in line with inventory trade knowledge.

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