Pioneer in short
Rupee hits new low on West Asia crisis
The rupee slid to a fresh lifetime low on Monday, weakening by 39 paise to close at 95.23 against the US dollar, as escalating West Asia tensions rattled global markets, kept crude oil prices elevated, and stoked inflation fears. Forex traders said persistent geopolitical uncertainty and firm Brent crude prices — hovering near USD 110 per barrel — are intensifying pressure on oil-importing economies like India. The rupee opened at 94.95 in the interbank market, weakened steadily through the session, and settled at its weakest-ever closing level. It had previously closed at 94.84 on Thursday and touched an earlier low of 94.88 on April 29. Markets were closed on Friday for Maharashtra Day. Analysts noted that a stronger dollar index and sustained foreign fund outflows are widening pressure on the currency.
HDFC Securities’ Dilip Parmar said persistent dollar demand could push the USD/INR towards 95.35-95.70 in the near term. Brent crude rose 1.37 per cent to USD 109.65, while the dollar index inched up to 98.26. Despite currency weakness, domestic equities ended higher, with Sensex gaining 355.90 points to 77,269.40 and Nifty rising 121.75 points to 24,119.30. FIIs bought equities worth Rs 2,835.62 crore.
Officials cautioned that fiscal stress may persist, even as capital expenditure remains a policy priority in the coming quarters.
