Rupee falls 39 paise to close at all-time low of 95.23/USD

The rupee fell 39 paise to close at an all-time low of 95.23 against the US dollar on Monday, as ongoing West Asia tensions caused volatility in global markets, keeping oil prices high and raising fears of inflation and economic slowdown. Forex traders said Brent oil, hovering near $110 per barrel, is putting pressure on oil-importing economies like India.

At the interbank foreign exchange market, the rupee opened at 94.95 against the US dollar, then lost ground and finally settled for the day at its lowest-ever closing level of 95.23, registering a fall of 39 paise over its previous close. The Indian currency recorded its previous lowest closing level of 94.88 on April 29. 

"The Indian rupee has hit a record low as the dollar recovered and crude oil prices held firm. This ongoing surge in oil prices, combined with foreign fund outflows, is putting a visible strain on India's trade balance and broader economy," Dilip Parmar, Senior Research Analyst at HDFC Securities, said on Monday. Parmar added that persistent dollar demand is expected to keep the pressure on the rupee in the short term, driving the USD-INR higher toward the 95.35 and 95.70 levels.                          -PTI