Rupee slides 35p to close at record low of 93.98 vs dollar

MUMBAI: The rupee closed at a record 93.98/$ on Monday, down 35 paise from its previous close of 92.63. In the process, it breached its prior low of 93.73 and briefly slipped past 94 after market hours. Sensing the impact of the West Asia conflict on the Indian economy through inflation, growth and current account deficit, investors dumped equities, bonds and the local currency as war fears stoked risks of prolonged energy disruption.Foreign portfolio investors pulled more than $11 billion from equities and bonds in March, marking the heaviest outflows since Oct 2024 and adding pressure on the rupee. The immediate trigger was US President Trump’s 48 hour deadline to Iran to open up the Hormuz Strait. However, post market hours, Trump announced postponing the deadline to strike Iran’s power plant leading to gains in financial markets.“The rupee traded sharply weaker below 93.95, declining by 0.37%, as escalating tensions in West Asia continue to weigh heavily on the currency. Rising crude oil prices have significantly weakened sentiment, with India’s position as a net importer leading to higher outflows and a widening import bill,” said Jateen Trivedi, analyst with LKP Securities. Since the Feb 28 onset of the Iran war, the rupee has dropped around 3%.