Mumbai: The Indian rupee has been now at historic low as it crossed 73 for the first time. It opened at 73.24 per dollar on Wednesday after crude oil prices heaved near $85 barrel, which is a four-year high. It has opened lower by 33 paise against Monday's close 72.91.
Indian currency Rupee continued to hang under pressure and today is likely to open at fresh record low levels following the pointed pitch at international crude oil prices. Brent crude is touched now at four-year high levels on fears that international supplies will go down due to Washington’s sanctions on Iran.
The US sanctions against Iran’s oil industry is at its max out this year. It supplied nearly 3% of the world’s daily consumption and is due to go into effect on November 4.
On the domestic front, market participants will monitor the RBI policy statement that due this week. Anticipations are that the RBI could mull over raising rates.
Traders are worried as increasing oil prices may led to a fiscal fall, increase inflationary pressures and lift up prospects of a rate hike by the Reserve Bank of India (RBI) in its October monetary policy evaluation.