Mumbai: The Indian rupee hit a record low of 82.22 against the greenback as climbing oil prices eroded sentiment. The rupee had closed at 81.88 in the previous session. Traders will now be closely looking at today’s US payrolls report for more clarity on probable Fed monetary policy stance. The dollar index, which tracks the greenback versus a basket of six major peers, was little changed at 112.032 following a rally from a two-week low.
That downward trend is unlikely to reverse anytime soon, according to the Oct. 3-6 Reuters poll of 40 FX analysts which showed the three month median forecast for the currency at 82.00/$.
Rising oil prices were the biggest weight on the rupee this week, given India’s status as the third-largest crude importer in the world. The country imports about 80% of its oil requirements, making the rupee sensitive to any rises in oil prices.
Oil prices rose on the back of a “deep” supply cut by the Organization of Petroleum Exporting Countries and its allies, and are set for more volatility as the U.S. readies a response to the move.
Crude prices are up between 7% and 11% this week, and are set for their biggest weekly gain since the early days of the Russia-Ukraine conflict this year.