Currency Buzz: INR Tanks To Lifetime Lows As Geopolitical Risks Intensify

7 Mar 2022 , 05:13 PM

The Indian rupee tanked 84 paise to close sharply lower at 77.01 (provisional) against the U.S. dollar on March 7 as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to safe haven assets. Escalating tensions between Russia and Ukraine kept crude oil prices at an elevated level and heightened worries about domestic inflation and wider trade deficits. Sustained foreign fund outflows and a lacklustre trend in domestic equities also weighed on investor sentiment. At the interbank foreign exchange market, the rupee opened at 76.85 against the American currency but lost ground and settled for the day at a record low of 77.01, down 84 paise from the previous close. On Friday, the rupee fell by 23 paise to close at 76.17 ? its lowest closing level since December 15, 2021.

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