Sharp Fall in Rupee Value; Crosses 92 Against the US Dollar

Mumbai: The Indian rupee witnessed a sharp decline amid a surge in global crude oil prices. At the close of trading on Wednesday, the rupee fell by 16 paise to 92.01 against the US dollar.

The escalation of tensions between Israel and Iran in West Asia and the strengthening of the US dollar in global markets dealt a blow to the Indian currency. The rupee, which opened at 91.92 in early trading on Wednesday, slipped to as low as 92.06 at one point.

On Tuesday, the rupee had closed at 91.85. Large-scale withdrawals by foreign investors from Indian markets also accelerated the fall of the rupee. In addition, the sharp decline in domestic stock markets worsened the situation.

Brent crude oil prices have risen by 5.44 percent to reach 92.58 dollars per barrel. Investors are concerned that rising fuel prices will increase India’s import costs. In the stock market, the Sensex fell by 1,342 points while the Nifty dropped by 394 points.

Economic experts warn that if tensions in West Asia continue, the rupee may weaken further. In the coming days, the rupee is expected to trade between 91.70 and 92.40 against the dollar.