Rupee crashes to 15-month low with 17 paise slump against US dollar

The rupee tumbled by 37 paise on Monday to hit the lowest level in about 15 months as oil marketing companies stepped up dollar purchases through banks in the wake of sharp uptick in Brent crude oil price and the greenback gaining strength.

The rupee closed at 75.36 to the US Dollar against the previous close of 74.99.

The Indian currency opened weaker at 75.11 per dollar. In intra-day trading, it saw a high and a low of 75.06 and 75.3950, respectively.

Crude oil price hike

Brent crude oil price rose almost 2 per cent to cross $84 a barrel.

A combination of factors, including banks’ buying dollar on behalf of oil marketing companies, which probably expect crude oil to become more pricey and are mopping up dollars before it hardens further, and foreign institutional investors, who are liquidating some of their bond market positions before the ripple effect of the China’s bond market slump is felt in emerging market economies, including India, pulling down the rupee, said a chief dealer with a private sector bank.

Brent crude oil could touch $90 per barrel as a global energy crisis looms and this could weaken the rupee further, cautioned the dealer.