Mumbai, March 18: The Indian rupee has reached a new all-time low against the US dollar, breaking the 92.50 mark for the first time, now standing at 92.634. This is a significant drop from the previous low of 92.4750.
On Wednesday, the rupee opened at 92.402, showing a decline of 3 paise. Throughout the day, the rupee’s value continued to fall, hitting a low of 92.334 and a high of 92.643 against the dollar.
The weakening of the rupee is attributed to ongoing conflicts in the Middle East. The price of crude oil has surged past $100 per barrel due to the Iran conflict, putting additional pressure on the rupee since India imports over 80% of its crude oil needs.
In the past month, crude oil prices have increased by more than 50%. Currently, Brent crude is priced at $103 per barrel, while WTI crude stands at $94 per barrel.
Jatin Trivedi from LKP Securities noted that the continuous rise in import bills has caused the rupee to slip below 92.60, marking its lowest level to date. The high prices of crude oil and ongoing disruptions in shipping through the Strait of Hormuz are raising concerns about rising import costs for India.
He further stated that the overall economic outlook remains unfavorable, with crude oil prices likely to stay high for an extended period, continuing to exert pressure on the rupee. Market participants are closely monitoring the US Federal Reserve’s policy decision today, which will play a crucial role in determining the dollar’s direction and, consequently, the fluctuations of the rupee.
In the near future, the rupee is expected to remain within a weak range of 92.25 to 92.95 against the US dollar.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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