The rupee falls to historic lows as crude oil prices rise globally

28 Jun 2022 , 12:41 PM

A spike in global crude prices and a decline in local equities caused investors to sell the local currency on Tuesday, according to dealers, who added that it was doubtful that the Indian rupee would see significant losses during the day.

The energy minister of the United Arab Emirates stated that the country was producing close to its full capacity, defying hopes that it might assist raise supply in a tight market. As a result, oil prices increased by nearly 1% in early Asian trading.

In comparison to Monday’s finish of 78.34, the partly convertible rupee was trading at a record low of 78.5875/5975 per dollar by 04: 08 GMT. If the rupee continues to decline during the session, traders anticipate that the central bank may support it by selling dollars, therefore containing local currency losses.