Weakened by the gain in the US dollar overseas from sustained capital outflows, the Indian Rupee hit a new 15 month low of 67.20 against the American currency in early trade today. As of 10.20 am IST, it was at 67.26, which is 0.6 paise higher than the opening.
Yesterday, the rupee hit its 15-month low of 67.13, as crude oil prices surged over $75 per barrel.
A higher opening of the Indian stock markets saved the rupee from some losses, however, the increased demand for the US dollar from importers did not stop the domestic currency from struggling to recover.
The high prices on crude oil prevail for the pending decision from President Donald Trump on whether or not the US will impose sanctions on Iran.
Rating Agency ICRA on Monday said that the weakened rupee could decrease the demand for jewellery purchase by 2 to 4 percent for the calendar year 2018 due to higher gold prices.