Rupee Plunges to Record Low vs Dollar as Oil Prices Skyrocket

The rupee opened at 92.20 against the US dollar and further weakened to 92.528 per USD during early trade.

Currency experts noted that the domestic currency is facing pressure due to the sharp rise in crude oil prices, which surged around 25 per cent on Monday to USD 116 per barrel.

Market participants said the jump in crude prices has increased the demand for the US dollar, especially from oil importers, thereby putting pressure on the rupee.

K N Dey, a currency expert, told ANI that the rupee opened with a significant gap compared to its previous closing levels.

"Rupee opened with a gap of 46 paisa from Friday's closing at 92.20. Presently 92.29/30. RBI intervention would act as a speedy breaker and to protect any high volatility. There is a huge demand of dollars also from importers and Oil companies. Uncertainty will remain till we see some actual signs of de-escalation and restoration of Supply Chain management. Brent touched 110 USD today," Dey said.

Experts believe that intervention by the Reserve Bank of India could help curb excessive volatility in the currency markets if the pressure continues.

Ponmudi R, CEO of Enrich Money, said the USD/INR pair is currently trading at fresh all-time highs amid rising geopolitical tensions and higher crude oil prices.

"The USD/INR pair is currently trading at fresh all-time highs, hovering near the 92.30-92.32 zone. Rising geopolitical tensions in the Middle East have disrupted critical oil transit routes, pushing crude prices higher and triggering a flight to safety toward the US dollar. For India, higher oil import costs and dollar strength are exerting sustained downward pressure on the rupee," he said.

He further noted that the chart structure currently remains bullish in favour of the US dollar.

"The chart structure remains bullish in favour of US dollar, supported by an upward trend with consistent higher highs and higher lows in recent months. A sustained move above 92.30-92.32 could extend the rally toward higher levels," he added.

Ponmudi also pointed out that on the downside, the 91.90-92.00 zone acts as immediate support. He said that a break below this level may trigger short-term profit booking or possible intervention by the Reserve Bank of India, though the broader bias remains positive amid global uncertainties.

- ANI