The Indian rupee saw a steep loss of 42 paise to settle at 91.50 (provisional) against the US dollar on Monday after US and Israeli attacks on Iran intensified worldwide risk aversion, setting crude oil prices surginvg and demand for the American currency soaring. Massive selling in domestic equity markets and withdrawal of foreign funds further dragged the Indian currency down. At the interbank foreign exchange, the rupee opened at 91.23 and touched the intraday low of 91.65 against the greenback. The currency ended the session at 91.50 (provisional) against the dollar, registering a steep loss of 42 paise from the previous closing level. Indian shares tumbled on Monday as the possibility of prolonged turmoil in the Middle East and the ripple effects of higher oil prices prompted traders to move funds into safe-haven assets. Indian shares tumbled on Monday as the possibility of prolonged turmoil in the Middle East and the ripple effects of higher oil prices prompted traders to move funds into safe-haven assets. India imports nearly 85 percent of its crude oil needs and therefore a sharp surge in crude prices to their highest level in four years reignited investor concerns over inflation and India's external balances. The benchmark BSE Sensex fell over 2,700 points to an intraday low of 78,543.73 before recovering some lost ground to end the session down 1,048.34 points, or 1.29 percent, at 80,238.85. Similarly, the broader NSE Nifty index plunged 2.28 percent to hit a low of 24603.50 in intraday before settling down 312.95 points, or 1.24 percent, at 24,865.70.
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