Rupee Weakens Sharply And Starts October On A Negative Note

The rupee weakened sharpy against the dollar on Monday as oil prices surged.

Rupee Weakens Sharply And Starts October On A Negative Note

Rupee weakens sharply as oil prices surge over 3 per cent

The rupee weakened sharpy against the dollar on Monday as oil prices surged driven by expectations oil producers may cut production which would likely push up inflation further and lead to more aggressive central banks.

Bloomberg  quoted the rupee last changing hands at 81.7188 per dollar on the first trading day of October, after opening at 81.5887, compared to its Friday's close of 81.3488.

PTI reported that the domestic currency fell 38 paise to 81.78 against the US dollar in early trade.

That comes after the rupee posted significant gains on Friday after the Reserve Bank of India hiked interest rates to a three-year high and reaffirmed its intention to do whatever it takes to tame inflation and stabilise the currency from wild gyrations.

As Organization of the Petroleum Exporting Countries (OPEC+) considers lowering output by more than 1 million barrels a day for its largest decrease since the epidemic in an effort to bolster the market, oil prices increased by more than 3 per cent in early Asian trade on Monday.

That hurt the domestic currency as India relies on imports for over 80 per cent of its oil needs and a higher International price widens the country's balance of payments.

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