Indian rupee falls to all time low against US dollar as crude oil price surges

Image credit: RBI

The Indian rupee depreciated against the US dollar to its lowest level on September 6 on the back of a rise in crude oil prices.

The rupee fell by 10 paise and settled for the day at an all-time low of 83.14 (provisional) against the US dollar on Wednesday.

The drop in value for the Indian currency came against a sharp rise in US dollar value as the American greenback rose to the highest levels in six months.

Throughout the day it moved in a range of 83.02 to 83.18.

The rupee finally settled at 83.14 (provisional) against the U.S. dollar, down 10 paise from its previous close.

The India currency earlier hit the lowest level of 83.13 on August 21.

A day earlier the rupee dropped by 33 paise to close at 83.04 against the U.S. dollar.

US dollar rises on crude prices

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.07 per cent to 104.73.

Elevated crude oil prices also weighed on rupee. Brent crude futures, the global oil benchmark, was at $89.44 per barrel. It breached the $90 per barrel mark for the first time this year on September 5. Brent crude prices have been underpinned by extended production cuts by Saudi Arabia and Russia.

Hence, the US dollar gained in value as investors moved to it due to a safe-haven demand amid concerns over a global economic slowdown amid continued inflationary concerns.