The rupee fell 102 paise versus the US dollar on Thursday, closing at 75.63 (provisional) as risky assets eventually fell after Russia initiated military actions against Ukraine.
Foreign money outflows, significant selling in local shares, and high crude oil prices, according to forex dealers, impacted investor mood.
The rupee began at 75.02 versus the US dollar on the interbank foreign currency market but subsequently fell to a low of 75.75 against the greenback.
The local unit ended at 75.63, down 102 paise from the previous closing.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.74 percent higher at 96.90.
Brent crude futures rose 8.36% to USD 104.94 a barrel, the global oil benchmark.
Due to month-end dollar demand from oil importers, the rupee became the poorest performing Asian currency. Furthermore, safe-haven dollar demand has risen as a result of Russia’s strikes on Ukraine, which fueled a sell-off in risk assets, according to Dilip Parmar, a Research Analyst at HDFC Securities.
Brent crude oil prices soared beyond the USD 100-per-barrel level amid geopolitical concerns, worsening the rupee’s fortunes.
Spot USD-INR found support at 74.30, the 200-day simple moving average, and is currently aiming for a month high of 75.72, according to Mr. Parmar.
The 30-share Sensex closed 2702.15 points, or 4.72 percent, down at 54,529.91, while the wider NSE Nifty fell 815.30 points, or 4.78 percent, to 16,247.95.
According to stock exchange statistics, foreign institutional investors continued to be net sellers in the capital market on Wednesday, offloading shares worth Rs 3,417.16 crore.
As per Reuters, India’s Prime Minister Narendra Modi will meet with the finance minister and other officials on Thursday evening to address the economic impact of the Russia-Ukraine issue and methods to offset the impact of rising crude oil prices.