New Delhi: Indian Rupee on Tuesday plunged all time low loosing hopes of peace deal between the US and Iran sparked a run-up in oil prices. The rupee fell to 95.7375 per dollar, eclipsing its previous record low of 95.4325.
Likely intervention by the central bank helped limit further losses, traders said, with the local currency ending the trading session at 95.6275, down 0.3% from its previous close.
According to market experts, Prime Minister Narendra Modi’s comments over the weekend regarding fuel conservation and lower imports as a subtle acknowledgement that India’s trade deficit and balance-of-payments pressures could worsen if crude prices remain elevated for longer.
Meanwhile, Gold climbed Rs 1,500 to Rs 1.56 lakh per 10 grams in the national capital on Tuesday, while silver soared more than 4% to Rs 2.77 Lakhs per kg triggered by the sharp fall in the rupee against the US dollar and firm domestic sentiment amid persistent geopolitical tensions.