Rupee could fall to all-time low of Rs 80 per dollar: Report
This comes after oil prices soared to multi-year highs amid the Russia-Ukraine conflict, fueling fears of hyperinflation and sluggish growth.
FollowFollowing the Economic Times report, if the Russia-Ukraine conflict escalates, the rupee could fall to an all-time low of Rs 80 per dollar. Market trackers asserted that if the ongoing crisis between Russia and Ukraine persists, Sensex and Nifty will experience volatility.
Many brokerages have estimated that the rupee could plunge to Rs 77.93 a dollar this year. Several have even asserted that the downfall could be between Rs 80 to Rs 82 per dollar this year, as per the ET reports.
This comes after oil prices soared to multi-year highs amid the Russia-Ukraine conflict, fueling fears of hyperinflation and sluggish growth. A sharp drop in the rupee hit an all-time low against the US dollar on Monday, and persistent foreign fund outflows worsened the situation; traders told PTI.
The rupee fell to a historic low on Monday, while bond yields rose as a sharp rise in global crude oil prices fueled concern about domestic inflation, bolstering the central bank's prospects of raising interest rates.
More than two-thirds of India's oil requirements are imported. High prices are likely to exacerbate the country's trade and current account deficits and increase imported inflation.
The partially convertible rupee ended the session at 76.96 against the dollar, just off its session low of 76.97. It closed at 76.16 on Friday. According to Reuters, the rupee hit a record low of 76.9050 on April 22, 2020, during the Covid-19 pandemic.
