Rupee plunges 34 paise to 95.08 against dollar

The rupee slumped by 34 paise to close at 95.08 (provisional) against the American currency on Wednesday as crude prices crossed the $100 per barrel mark, stoking concerns over inflation and high forex outflows.

Weak equity markets and FII outflows also pressurised the rupee, forex traders said.

Brent crude futures surpassed $100 a barrel for the first time in almost six weeks after attacks on oil facilities and ships in West Asia threatened to weaken the already strained supply chain amid the US-Iran tensions. Brent crude was trading higher by 2.94 per cent at $100.73 per barrel.

At the interbank foreign exchange market, the rupee opened at 94.80, also its intraday high, against the US dollar. The local unit fell to an intraday low of 95.22 as crude oil prices surged. The rupee settled at 95.08 (provisional), down 34 paise from its previous close of 94.74.