Rupee Plunges to Fresh Lifetime Low, Closing at 96.86 Against US Dollar

Rupee Slumps to Fresh Lifetime Low Amid Global Crude Price Surge

The Indian rupee depreciated 16 paise to close at a fresh lifetime low of 96.86 against the US dollar on Wednesday, marking its ninth consecutive session of decline. The rupee's sharp decline has sparked concerns among policymakers, investors, and businesses, as it has emerged as one of the biggest economic warning signs.

At the interbank foreign exchange market, the rupee opened at 96.89 against the US dollar, only to lose further ground and touch a record low of 96.95. It briefly rebounded to the day's high of 96.65 before settling at a fresh all-time low of 96.86 against the greenback, registering a fall of 16 paise over its previous close.

In comparison to its previous session, the rupee had tumbled 50 paise to settle at 96.70 against the dollar.

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The rupee's decline is largely attributed to the surge in global crude prices amid the West Asia crisis, which has stoked inflation worries. The elevated crude prices have also led to a sell-off in global markets, making investors risk-averse. The US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.42, higher by 0.09 per cent.

| Comparison of Rupee's Decline | | --- | --- | | Date | Closing Value | | Wednesday | 96.86 | | Previous Session (Tuesday) | 96.70 | | Decline from Previous Session | 50 paise | | Decline from Previous Close | 16 paise |

The rupee's sharp decline has put pressure on the domestic equity market, with the Sensex rising by 117.54 points to settle at 75,318.39, and the Nifty up 41 points to 23,659. However, Foreign Institutional Investors offloaded equities worth Rs 1,597.35 crore on a net basis on Wednesday, according to exchange data.

The US Senate's advancement of legislation on Tuesday to force President Donald Trump to withdraw from the Iran war, as a growing number of Republicans defied President Trump's wishes, has also contributed to the rupee's decline. Meanwhile, Brent crude, the global oil benchmark, was trading down 2.77 per cent at USD 109.95 per barrel in futures trade.

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