NEW DELHI: The Indian rupee hit record lows against the US currency on Tuesday after higher oil prices raised concerns of sustained inflation, although intermittent dollar selling by the central bank helped limit losses. The Indian rupee dropped as much as 0.6 per cent to 78.775 versus the dollar, surpassing a previous all-time low of 78.39 hit last week. India imports more than two-thirds of its oil requirements, and higher crude prices add to the country’s trade and current account deficits (CAD) and hurt the rupee by pushing up imported inflation. Oil prices rallied for a third day as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns. The Indian currency and equities were pressured by worries that a rise in crude prices will exacerbate already high inflation.

Source: Libya Today June 28, 2022 16:39 UTC