Rupee slipped past the 91 mark against the US dollar on Monday, tumbling to 91.32, as escalating tensions in the Middle East and heightened volatility in global markets unsettled investors. Forex traders said that the currency came under added pressure from negative equity market sentiment and significant foreign fund outflows. Rupee opened at 91.23 and slipped to 91.29 in early interbank trade, down 21 paise from Friday’s close of 91.08, when it had lost 17 paise. At the same time, the dollar index, which measures the greenback against six major currencies, rose 0.22% to 97.78. Rising global crude prices added to market concerns, with Brent crude futures up 3.91% at $76.78 per barrel. Analysts linked the jump to recent US and Israeli military strikes in Iran. On Sunday, both countries carried out attacks across Iran, targeting ballistic missile sites and destroying warships, following the killing of Iran’s Supreme Leader, Ayatollah Ali Khamenei. Experts said that the surge in oil prices could push India’s import bill higher, as the nation imports roughly 85% of its fuel requirements. As tensions continue to escalate, Dalal Street also opened in red with Sensex falling almost 1,000 points, while the Nifty fell 240.95 points, or 0.96 per cent, to 24,937.70 in early trade. On Friday, foreign institutional investors sold equities worth Rs 7,536.36 crore, according to exchange data. Government data released on Friday, reflecting a revamp of the GDP calculation framework, projected India’s economic growth at 7.6% for the current fiscal year. Meanwhile, the Reserve Bank of India reported that forex reserves fell by $2.119 billion to $723.608 billion in the week ending February 20, after climbing by $8.663 billion to an all-time high of $725.727 billion the previous week.
