Rupee hits record low of 92.35 vs dollar as oil surge pummels Asian assets

Indian assets dropped on Thursday and the rupee fell to a record low, as a fresh surge in crude oil prices reignited worries over ‌the ⁠economic impact ⁠from energy supply disruptions even as the currency's fall was cushioned by central bank intervention.

Brent crude oil prices climbed to $100 per barrel as Iran stepped up attacks on oil and transport facilities across the Middle East, warning the ⁠world to ‌brace for oil at $200 a barrel.

The rupee fell 0.3% to 92.3575, eclipsing its previous ⁠lifetime low of 92.3475 hit earlier in the week.


India's benchmark equity index Nifty 50 fell about 1%, the yield on the benchmark 10-year bond rose 4 bps, and the rupee averted a fresh record low largely on the back of ‌central bank intervention, traders said.

Asian currencies weakened across the board, while MSCI's gauge of regional stocks fell more ⁠than 1.5%.

"We expect the RBI to intervene in 92.30-92.35. However if Brent continues to remain elevated for a couple of sessions, the RBI may have to let the rupee go," said Abhishek Goenka, chief executive at FX advisory firm IFA Global.