The Indian rupee plunged to its all-time closing low of 92.35 (provisional) against the US dollar on Monday, falling 53 paise during the session as a sharp spike in global crude oil prices and a stronger dollar amid escalating tensions in the Middle East weighed on the domestic currency. 

Forex traders said persistent foreign fund outflows and intense selling in domestic equity markets further added pressure on the rupee. 

At the interbank foreign exchange market, the rupee opened at 92.22 and briefly strengthened to 92.15 against the dollar in early trade. However, it lost ground through the session and finally settled at 92.35 (provisional), sharply weaker compared with its previous close. On Friday, the rupee had depreciated 18 paise to close at 91.82 against the American currency. 

Crude price surge adds pressure 

Rising crude oil prices, triggered by escalating tensions involving the Iran, Israel, and the US, added to the pressure on the rupee. 

Global oil benchmark Brent crude surged 15.18% to $106.8 per barrel in futures trade. 

Meanwhile, the US Dollar Index, which measures the strength of the greenback against a basket of six currencies, was trading 0.35% higher at 99.33, reflecting broad-based dollar strength. 

Stock markets tank 

Domestic equities also came under heavy selling pressure as surging oil prices and weak global cues triggered a sharp sell-off. 

The benchmark BSE Sensex fell 1,352.74 points, or 1.71%, to close at 77,566.16, marking its second consecutive day of decline. During the session, the index had plunged as much as 2,494.35 points, or 3.16%, to 76,424.55. Similarly, the Nifty 50 also declined nearly 2%. 

Market participants said sustained foreign institutional investor outflows and weakness in the rupee further dampened investor sentiment. 

On the broader market, 3,379 stocks declined on the BSE, while 972 advanced and 185 remained unchanged, highlighting the extent of the sell-off. 

Forex reserves at record high 

Meanwhile, India’s foreign exchange reserves rose sharply in the latest reporting week. Data released by the Reserve Bank of India showed that the country’s forex reserves increased by $4.885 billion to reach a record $728.494 billion for the week ended February 27.