Indian rupee crashes against UAE dirham amid escalating Russia-Ukraine tension

High oil prices, weaker equity markets also weigh on the rupee.

A Staff Reporter

Published: Mon 28 Feb 2022, 9:37 AM

The Indian rupee tumbled 40 paise to 75.33 against the dollar (20.52 versus the UAE dirham) in early trade on Monday, tracking the surge in crude prices amid escalating tensions between Russia and Ukraine.

At the Indian interbank forex market, the rupee opened sharply lower against the American currency, moving in a tight range of 75.78 and 75.70.

In early deals, it was trading at 75.73, registering a fall of 40 paise over its previous close.

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In the previous session, the rupee had gained 27 paise to settle at 75.33 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.78 per cent higher at 97.37.

Global oil benchmark Brent crude futures surged 4.24 per cent to $102.08 per barrel.

Meanwhile, in a dramatic escalation of tensions in eastern Europe, Russian President Vladimir Putin ordered his nuclear forces to be on high alert in response to what he called "aggressive statements" by leading Nato powers over the Ukraine conflict.

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On the Indian equity market front, the 30-share Sensex was trading 709.15 points or 1.27 per cent lower at 55,149.37, while the broader NSE Nifty fell 198.15 points or 1.19 per cent to 16,460.25.

(with inputs from PTI)