Indian rupee hits 95 mark against dollar

The Indian rupee on Monday crossed the 95 per dollar mark for the first time, hitting 95.2 against the US dollar, down 0.3 per cent.

It ended at a record closing low of 94.83 per dollar, compared to Friday’s close of 94.81.

The currency has depreciated by 4.4 per cent against the US dollar in the March quarter.

The rupee, which had opened on a strong note after the Reserve Bank of India (RBI) reduced the net open position limit that banks can keep overnight to $100 million, erased its gains and fell 160 paise from its opening level. Moreover, the rupee fell about 1 per cent last week, its fourth consecutive weekly decline of a similar magnitude to hit a record low of 94.84 against the dollar.

After market hours on Friday, the central bank said banks must ensure that by April 10, their net open rupee positions in the onshore deliverable market do not exceed $100 million at the end of each business day. Estimates suggest that the magnitude of these positions ranges from $25 billion to over $50 billion.

Worries over elevated oil prices have put Indian stocks on course for their worst monthly drop since March 2020 and bonds on track for their weakest fiscal year since 2023.

Escalation in the West Asia conflict has also pushed up global crude oil prices. Brent crude futures jumped 3 per cent to an intra-day high of $116.70 per barrel, nearing a fresh 52-week high. Meanwhile, US benchmark West Texas Intermediate (WTI) rose over 3 per cent to cross $103 per barrel.

In March, the rupee fell by more than 4 per cent amid the geo-political tensions. On the domestic equity market front, the Sensex settled at 71,947.55, down 1,635.67 points or 2.2 per cent, while the Nifty closed at 22,331.40, lower by 488.20 points or 2.14 per cent. Foreign institutional investors sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.

Indo-Asian News Service