Apart from surging oil prices, higher demand for the greenback from importers and banks as well as the lower opening of the equity markets have weighed on the rupee.
India’s rupee weakened to the lowest level in more than a month and bonds fell as a jump in oil prices once again exposed the nation’s vulnerability to spikes in energy costs.
The prospect that Prime Minister Narendra Modi and his party will manage to just about win a parliamentary majority has sparked net inflows of over $8 billion into equities so far this year.
The rupee was the worst performing Asian currency last year but gained over 2 per cent in March despite the Reserve Bank of India easing policy in February and expectations for it to do so again later on Thursday.
Rupee vs dollar: Experts say the WTI crude oil prices, which has risen from $54/barrel to around $62.36/barrel today will make Indian oil imports dearer.
