The Indian rupee slumped sharply beyond Rs 95 per dollar mark on Monday after Iran war escalation jolted global markets, fuelling rupee volatility and risk-off sentiment. USD/INR pair witnessed high volatility and swung 165 paise during intra-day trade as the West Asia crisis entered the 31st day keeping energy markets nervous. At the interbank foreign exchange, the rupee opened at 93.62 and then gained further ground to 93.57 against the US dollar, registering a gain of 128 paise from its previous close, after the Reserve Bank brought down the net open position that banks can keep overnight at USD 100 million. The intervention comes as the rupee has declined more than 4% over the past month. However, thereafter the currency fell to an intraday low of 95.22 during the day before ending at around 94.70 as compared to previous close at 94.85. The rupee declined 11% over India's fiscal year which runs from April to March, its steepest fall since 2011-12. Overseas investors net sold over $19 billion of Indian stocks over the last 12 months, touching a record monthly pace in March as a sharp surge in oil prices in the wake of the war in the Middle East left investors fretting over risks to net energy importer India.
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