Rupee dips to 15- month low

Mumbai, May 7: The rupee on Monday crashed below the 67mark to close at a 15month low of 67.13 against the US currency following a surging demand for the dollar as crude oil prices zoomed past $ 75 per barrel level.

Huge dollar purchases by oil importing companies along with speculative activity largely weighed on the rupee, a currency dealer said.

The rupee drifted sharply to a low of 67.18 in late afternoon- deals before concluding at 67.13, revealing a steep loss of 26 paise, or 0.39 per cent.

This is the lowest level for rupee since February 8, 2017 when it had ended at 67.19 against the US dollar. The rupee has been the worst performer this year so far, losing 5.10 per cent since January.

A sudden flare- up in global crude prices rattled the forex market sentiment in a big way stoking concerns over widening trade deficit and higher capital outflows.

India being a net crude oil importer, a sharp rise in prices can affect the import bill and disrupt the fiscal position, a forex dealer commented.

Oil jumped to its highest levels since late- 2014 on Monday to cross the $ 75 a barrel tag boosted by Venezuela’s deepening economic crisis and a looming decision on whether the US will reimpose sanctions on Iran.

“FIIs continue to be net sellers in Indian equities, adding further pressure on the rupee. To this end, CPI release scheduled later this week will be viewed with interest. Markets participants also watched the RBI’s recent move to conduct OMO; to buy government bonds worth up to ` 10,000 crore on 17May,” said Anand James, Chief Market Strategist at Geojit Financial Services.