Rupee Plummets Below 96 as Crude Prices Soar and FII Outflows Continue
The Indian rupee has fallen to a new low against the US dollar, depreciating by 16 paise in early trade on Tuesday. The rupee now stands at 96.13 against the greenback, down from its previous close of 95.97. This decline is largely attributed to high crude oil prices and persistent foreign fund outflows.
According to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, the rupee is under pressure due to firm oil prices and rising US nominal and real yields. He also predicts that if the rupee breaks above 96.50, it could reach as high as 98.
Meanwhile, Brent crude has risen by 1.51% to $106.87 per barrel in futures trade, amidst concerns over disruptions to crude supplies through the Strait of Hormuz.
The domestic equity market is also feeling the heat, with Sensex tanking 503 points to 72,260.09 and Nifty dropping 151 points to 22,626.50.