Indian Rupee Reaches Record Low Due To Oil Crisis

The Indian rupee pared early gains to close at record low on Monday, as rising crude prices weighed on the currency, even as other Asian currencies drew some strength from a retreating dollar.

It was the rupee's sixth straight session of record lows.

The partially convertible rupee slumped to a record closing low of 79.97 against the dollar, versus Friday's close of 79.88. It had dropped to 79.985 per dollar during the session.

Brent crude prices hovered around $104 a barrel, which analysts said added to the burden on the rupee.

India imports more than two-thirds of its oil requirement and high global crude prices have threatened to increase the country's trade and current account deficits.

The rupee had weakened to a record low of 79.96 last week, as the dollar gained after inflation data raised the prospect of more aggressive policy tightening by the U.S Federal Reserve.

With the Federal Reserve officials signalling a 75-basis-point rate hike at the upcoming meeting, rather than the 100 bps some feared, risk sentiment improved, and the safe-haven dollar =USD nudged down to 107.86 from last week's two-decade high of 109.290, which helped other Asian currencies to gain some ground.

The 10-year bond yield ended largely flat at 7.44%.