The Indian rupee opened at a record low of 96.17 against the US dollar on Monday, compared to Friday’s closing rate of 95.97, amid sustained pressure from rising global crude oil prices, a stronger US dollar, and continued foreign exchange outflows.
Image: Samco
According to Indian media reports, the currency came under pressure as Brent crude prices surged by more than 2 percent overnight, trading around $111 per barrel. The increase followed reports of an attack on a nuclear facility in the United Arab Emirates and renewed uncertainty over diplomatic efforts involving the United States and Iran.
Market sentiment was further affected by the absence of any significant outcome from the recent meeting between US President Donald Trump and Chinese Premier Xi Jinping.
Analysts said additional pressure came from the strengthening US dollar, supported by strong economic data from the United States, which weighed on emerging market currencies including the Indian rupee.
Persistent foreign portfolio outflows also contributed to the depreciation, keeping the rupee under continued stress in volatile global market conditions.
