The rupee hit a historic low of 76.96 against the US dollar on Monday, breaching its COVID era-low of 76.90 (April 2020), after crude oil prices hit their highest levels in 14 years amid concerns about supplies thanks to the Russia-Ukraine war.
The rupee hit a historic low of 76.96 against the US dollar on Monday, after crude oil prices hit their highest levels in 14 years as concerns about the Russia-Ukraine war rattled the financial markets. The rupee slid below the COVID era-low of 76.90 -- struck in April 2020 -- during the session, before finishing the day at the new all-time low.
Heightened geopolitical uncertainty damaged investors' appetite for risk globally, causing a sell-off across equities. Indian equity benchmarks tanked more than three percent each amid deep cuts across most sectors barring metals, which rose along with other commodities.
The greenback and US bond yields surged as higher oil rates fuelled worries about a worse-than-expected acceleration in inflation and its impact on key interest rates.