The Indian rupee crashed 139 paise to 94.90 against the US dollar in early trade on Monday, following President Donald Trump's rejection of Iran's response to the US peace proposal. Crude oil prices surged rapidly, putting further pressure on the local unit.
Forex traders noted that a strengthening US dollar and steep FPI outflows also contributed to the rupee's decline. The rupee opened at 94.97 against the US dollar before inching up to 94.90, down 139 paise from its previous close.
Iran has sent its response to the latest US ceasefire proposal via Pakistani mediators, seeking negotiations to permanently end the war. Trump rejected the proposal as 'totally unacceptable', prompting a surge in oil prices and a decline in the rupee.
The dollar index was trading at 98.20, up 0.20 per cent, while Brent crude rose sharply by 4.17 per cent to USD 105.5 per barrel in futures trade. The domestic equity market also plummeted, with Sensex falling 810.35 points and Nifty tanking 225.40 points.
Foreign Institutional Investors offloaded equities worth ₹4,110.60 crore on Friday, while India's forex reserves dropped by USD 7.794 billion to USD 690.693 billion during the week ended May 1.
