Rupee tanks to record low of 92.32 against US dollar as oil prices surge amid West Asia war

Furthermore, a big surge in FII outflows and a crash in the domestic equity market also weighed on the rupee.

In the international market, Brent crude oil skyrocketed as much as 28.92% to a 52-week high of $119.50 per barrel, amid rising hostilities in West Asia, as several oil and energy facilities in the Gulf were attacked.

On Friday, foreign institutional investors (FIIs) sold equities worth ₹6,030.38 crore on a net basis, according to exchange data.

Meanwhile, India's forex reserves jumped $4.885 billion to an all-time high of $728.494 billion during the week ended February 27, the Reserve Bank said on Friday.

On the domestic equity market front, the SENSEX crashed as much as 2,494.35 points to an intraday low of 76,424.55 in early trade, while the NIFTY50 tumbled as much as 752.65 points to the session’s trough of 23,697.80.

At the interbank foreign exchange, the rupee opened at 92.22 against the US dollar before declining further to 92.32.

The rupee depreciated 18 paise against the US dollar on Friday to close at 91.82 against the American currency.

"The rupee will remain vulnerable to the rising oil prices, which have risen by more than 28% since the last closure on Friday. Asian currencies were also lower on Monday," PTI reported, quoting Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Rupee might touch 93.00 if oil remains above USD 100 in the coming trading sessions, he added.

The dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.51% higher at 99.495.