Mumbai: The rupee plunged to a record low of 77.41 against the US dollar on Monday amid persisting high crude oil prices and uncertainty over the duration of the Russia-Ukraine war. At the interbank foreign currency market, the rupee hit a low of 77.41 against a US dollar in intra-day trade on Monday against its previous close of 76.93.
The rupee has weakened sharply over the last few months due to a sharp rise in crude oil prices in the international markets.
The Brent crude oil price surged to near USD 130 a barrel in March, the highest level since 2008. Currently, Brent crude oil is priced at USD 113.
Due to high crude oil prices, India's trade and fiscal deficits are expected to rise, and will put increasing pressure on the Indian currency.
On February 24, Russia launched a military operation in Ukraine, three days after recognising the Ukrainian breakaway regions of Donetsk and Luhansk as "independent republics". The Russian Ministry of Defense maintains that the operation is targeting Ukrainian military infrastructure only. In response, Western nations imposed comprehensive sanctions against Russia.