On Monday, the Indian rupee slumped to an all-time low of 77.36 against the U.S. dollar. Foreign outflows and elevated oil prices have accelerated the rupee’s fall. This has coincided with foreign portfolio investors continuing to withdraw funds from Indian equities and remaining net sellers for the past seven months. Moreover, since March, crude prices have hovered above the $100 per barrel-mark on most days following Russia’s invasion of Ukraine. In this scenario, a weak rupee will further inflate the country’s import bill. India’s foreign reserves have also been dented due to the central bank’s intervention in the spot market to prop up the Indian unit.
At its lowest point
The chart shows the Indian rupee exchange rate vis-a-vis the U.S. dollar between January 2010 and May 2022. The value of the rupee reached an all-time low on May 9. The rupee’s previous low came on March 7, 2022 when it touched 76.92.
