Crude surge and FII outflows batter rupee
image for illustrative purpose
Mumbai: The rupee on Monday slumped 42 paise to settle at 91.50 (provisional) against the US dollar, hit by sharp risk aversion in global markets after US and Israeli attacks on Iran pushed crude oil prices sharply higher and boosted demand for the American currency. Heavy selling in domestic equities and continued foreign fund outflows further weighed on the rupee, forex traders said.
At the interbank foreign exchange, the rupee opened at 91.23, touched an intraday low of 91.65 and finally closed at 91.50, logging a steep fall from Friday’s close of 91.08, when it had already lost 17 paise.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee declined nearly half a per cent amid global risk-off sentiment following the weekend attacks on Iran. FII outflows and overnight gains in crude oil prices added pressure. He said the rupee may trade with a negative bias, though diplomatic talks or RBI intervention could offer support. USD-INR is expected to move in a 91.10–91.80 range.
