The Indian rupee has touched a new record low against the US dollar, due to high commodity prices, as well as the outflow of foreign funds from equity markets.
Meanwhile, the Russia-Ukraine war has also resulted in rising prices of crude oil, along with other commodities and this has also contributed to the weak pressure on the rupee.
The Ukraine crisis pushed Brent’s crude oil price to $130 a barrel on Monday. Besides, the trend is expected to trigger an inflationary trend and ultimately a reversal in monetary policy. Further, it has accelerated FIIs’ selling in the Indian equity market.
The FIIs net sold Rs 7,482.08 crore worth of equities. Consequently, the Indian rupee touched a new record low of 77 to a US dollar on Monday’s trade session. It weakened to 77.16 and closed at 76.97 to a USD.