Rupee Holds Near Record Low on Oil and Equity Outflows
The Indian rupee is trading near its all-time low as Brent crude stays above $100 per barrel. Foreign investors have pulled over $5.7 billion from local stocks so far this month.
The currency of India is expected to remain under significant pressure near its record low as global markets react to escalating geopolitical tensions and rising energy costs. On Monday, the 1-month non-deliverable forward indicated the rupee would open between 92.42 and 92.48 against the United States dollar, hovering near the lifetime low of 92.4750 reached last Friday.
The primary driver of the currency's weakness is the ongoing conflict involving Iran, which has sent energy prices soaring. Brent Crude Oil recently reached a high of $106.10 per barrel, representing a nearly 40% increase since hostilities began on February 28. The situation remains volatile, with the American administration seeking international cooperation to secure the Strait of Hormuz while Tehran issues warnings against regional facilities with American ties.
