Rupee slumps to record low against US dollar as India faces an unprecedented crude bill, topping a $100 billion. Crude prices surged to the highest level since 2008, topping $140/bbl adding pressure on how much India will now have to pay for its oil demand.
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Oil prices soared after the United States and European allies mull a Russian oil import ban. All eyes turned the RBI for support as a drop in the currency not only inflates the $ bill for import but also whipsaws exporters that are seeing mild recovery after the pandemic.
The RBI has over $630 billion in forex reserves right now, sources indicate that the central bank sold dollars in Monday's trade to ease the pressure on the plunging rupee.