GUWAHATI: The Indian rupee plunged to a fresh all-time low of 96.39 against the US dollar in early trade on Monday, May 18, weakened by soaring crude oil prices, a strong dollar, and rising global geopolitical tensions.
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According to forex market analysts, the domestic currency remains under pressure as a surge in oil prices and uncertainty in international markets fuel concerns for emerging market economies, including India.
At the interbank foreign exchange market, the rupee opened weaker at 96.19 against the dollar and slipped further to 96.25, marking a sharp decline of 44 paise from its previous closing.
Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six currencies, edged up 0.04 per cent to 99.32 amid ongoing tensions involving Iran.
Global crude oil prices also continued their upward trend, with Brent crude futures rising 1.83 per cent to USD 111.26 per barrel, adding further stress on the Indian currency due to India’s heavy dependence on oil imports.
The rupee had already breached the 96-per-dollar mark during Friday’s trading session before eventually settling at a record closing low of 95.81 against the US dollar.