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New Delhi. The Indian rupee fell 18 paise to a new all-time low of 96.38 against the US dollar in early trade today amid ongoing geopolitical tensions in West Asia and a bearish trend in global markets. Forex traders say that due to continuous withdrawal of foreign funds from the domestic stock market and rising crude oil prices, the pressure on the rupee has increased further. Today the rupee opened at 96.24 against the US dollar in the interbank foreign exchange market, and after a few minutes a huge fall of 18 paise was seen. This fall touched a record low of 96.38. However, in the previous trading session the rupee had closed at the level of 96.20 per dollar.

Read :- Will Rupee score a century? Falling by 20 paise and reaching near 96 against dollar, Asia’s weakest performing currency

According to market analysts, this decline has happened due to the skyrocketing prices of crude oil. Due to the deepening of the crisis between America and Iran, Brent crude oil futures have now increased by 1.34 percent to $ 111.45 per barrel, due to which there is a strong possibility of India’s import bill increasing. On the other hand, the US Dollar Index (DXY) remains strong at the level of 99.32 as its demand for safe investment has increased in the global markets. Apart from this, America’s 10-year treasury yield has also increased to 4.62 percent. Also, foreign portfolio investors (FPIs) are continuously withdrawing their capital from Indian stock markets, due to which the demand for dollars has increased significantly.

India imports more than 80 percent of its crude oil needs from other countries. Therefore, if the rupee weakens, crude oil will become expensive, due to which the cost of petrol, diesel and freight transportation in the country will also increase. Its effect will also be seen on the general public. Due to which the expenses of international tours and Indian students studying abroad will now directly increase. Besides, the prices of electronics products imported from abroad will also increase.

Analysts at CR Forex Advisors say that currently the range of 96.00 to 96.50 remains quite sensitive for the dollar and rupee (USD-INR) pair. If geopolitical tensions still do not ease, the rupee may move towards 97 levels in the coming days. However, there is every possibility of intervention by the Reserve Bank of India (RBI) to protect the market from excessive fluctuations.

Report: Sushil Kumar Sah

Read :- Big fall in rupee against dollar, closed at 94.11 with a fall of 33 paise.