Indian rupee hits all time low

The rupee has lost ground versus the US dollar as investors flocked to the greenback's safe-haven allure because of some geopolitical uncertainties due to the Russia-Ukraine war.

Indian rupee hits all time low
Photo by rupixen.com / Unsplash
Photo by rupixen.com / Unsplash

On Monday, the Indian rupee hit an all-time low, while bond yields soared, as a strong spike in global crude oil prices stoked fears of local inflation, bolstering the central bank's chances of raising interest rates.

After touching 76.96, the partially convertible rupee was trading at 76.92/93 per dollar, its lowest level ever. On Friday, it had closed at 76.16. With over two-thirds of India's oil being imported, the high prices are anticipated to increase the import inflation and deepen the country's trade and current account imbalances.