Indian rupee crosses 93 against US dollar for 1st time (Lead)
Mumbai, March 20
The Indian rupee dropped to a record low on Friday to 93.12 against the US dollar, amid global supply chain disruptions due to escalating Middle East conflict.
The domestic currency fell 0.55 per cent to 93.12, eclipsing its previous low of 92.63 on Wednesday.
The rupee has depreciated nearly 2 per cent since the West Asia tensions began.
According to experts, the USD/INR pair is trading above the 92.8 level, indicating continued pressure on the rupee amid elevated crude prices and global risk aversion.
A sustained move above 93.00 could strengthen the upside bias, with resistance seen in the 93.20-93.40 range, while support is placed near 92.70 and 92.50-92.40 levels, said Ponmudi R, CEO of Enrich Money.
Domestic equity markets, however, rebounded, with the Sensex rising over 900 points, or around 1 per cent, while the Nifty gained about 300 points, or 1.35 per cent.
Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 7,558.19 crore on Thursday, according to exchange data.
Meanwhile, global oil prices traded lower after the US signalled a possible easing of sanctions on Iranian crude, as efforts intensified to secure shipping through the Strait of Hormuz.
Brent crude futures fell as much as 3.39 per cent to an intraday low of $104.96 per barrel, while US WTI crude futures traded 3.22 per cent lower at $92.47.
The decline in oil prices followed comments by US Treasury Secretary Scott Bessent, who indicated that Washington may consider easing restrictions on Iranian oil already at sea to help cool global prices.
Despite the recent decline, crude prices have surged sharply amid geopolitical tensions. As the West Asia conflict entered its 21st day, Brent crude rose nearly 40 per cent, from $77.74 on March 2 to $108.65 on March 19.
— IANS
Reader Comments
It's a paradox, no? Rupee hits a new low but Sensex rallies 900 points! 🤔 Shows how complex the market is. Hopefully, the dip in crude oil prices will provide some relief soon. Fingers crossed!
As someone who sends money home from the US, this is actually good news for me. My dollars fetch more rupees now. But I understand it's a double-edged sword for the country's economy.
The article clearly links this to global supply chains and the Middle East conflict. It's a reminder of how interconnected the world is. India's currency is vulnerable to events far from its borders.
While the external factors are real, I respectfully think our policymakers could be more proactive. We've seen this pattern before. Stronger forex reserves should be used more effectively to curb such sharp falls. Just my two paise.
The key is oil prices. If the US eases sanctions and crude stays lower, the rupee will get breathing room. But with the conflict ongoing, it's all very uncertain. Time to buckle up for a bumpy ride.
This directly impacts my monthly budget. Already feeling the pinch from vegetable prices, and now this. Hope the RBI has a plan
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