Rupee ended at lifetime low on Monday as a sharp surge in global crude oil prices to above $130 threatened to push up imported inflation and widen the country's trade and current account deficits. The rupee declined against the US dollar as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to the greenback's safe-haven appeal. Besides, sustained foreign fund outflows and a lacklustre trend in domestic equities also weighed investor sentiment. Sentiments were fragile as a private report lowered India’s economy growth forecast to 7.8 per cent for 2022 due to the nation’s exports being impacted by the Russia-Ukraine war and spiking oil prices causing ripple effects. It said rupee is likely to further depreciate against US dollar while soaring commodity prices will push inflation up. On the global front, pound roared to another 5-1/2 year high versus the euro but dropped to its weakest since December 2020 against the dollar, as another volatile session sent investors to buy dollars.
Finally, the rupee ended at 77.10 (Provisional), weaker by 93 paise from its previous close of 76.17 on Friday. The currency touched a high and low of 77.11 and 76.79 respectively.
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