Mumbai, March 30 The rupee trimmed its initial gains and hit a historic low of 95.22 in intra-day trading on Monday, as rising oil prices, ongoing geopolitical tensions, and a strong dollar continued to put pressure on the currency.
The rupee, which opened on a strong note after the Reserve Bank reduced the net open position that banks can keep overnight at USD 100 million, erased its gains and fell by 160 paise from its opening level.
At the interbank foreign exchange market, the rupee opened at 93.62 and then further gained ground to 93.57 against the US dollar, registering a gain of 128 paise from its previous close.
However, it failed to sustain this momentum and fell to an all-time intra-day low of 95.22 against the American currency.
On Friday, the rupee plunged by a massive 89 paise to close at a historic low of 94.85 against the US dollar.
Forex traders said the USD/INR pair is facing pressure from the elevated dollar index and crude oil prices. Strong demand for the dollar index, which remains above the 100 mark, is limiting any meaningful recovery in the rupee.
Furthermore, rising geopolitical tensions quickly reflected in oil prices, with Brent crude surging as fears of supply disruptions increased, they added.
Meanwhile, the dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading 0.15 per cent lower at 100.30.
Brent crude, the global oil benchmark, was trading at USD 115.50 per barrel, up 2.60 per cent, in futures trade.
On the domestic equity market front, the Sensex tumbled by 1,733.78 points to 71,849.44, while the Nifty slumped by 528.45 points to 22,291.15.
Foreign institutional investors sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.