The dollar index, which measures the US currency against a basket of six major peers, edged up 0.03 per cent to 99.08, signalling steady global demand for the greenback.
Analysts cautioned that India is particularly vulnerable to higher oil prices, as around 85 per cent of its fuel needs are met through imports. A sustained rally in crude could significantly raise the country’s import costs, widen the trade deficit and add to inflationary pressures.
Domestic equities mirrored the currency’s weakness. The BSE Sensex fell 1,671.39 points, or 2.08 per cent, to 78,567.46 in early trade, while the Nifty 50 declined 502.35 points, or 2.02 per cent, to 24,363.35.
Exchange data showed that foreign institutional investors were net sellers on Monday, offloading shares worth Rs 3,295.64 crore, adding to the downward pressure on markets.
With geopolitical risks intensifying and oil prices climbing, traders expect the rupee to remain volatile in the near term as global uncertainties continue to dominate sentiment.
With PTI inputs
