The rupee soon
fell more than 0.5% against the US dollar on Monday, followed by higher oil
prices and risk sentiment caused by a sharp rise in tensions in Europe.
This suggests
that the energy-sensitive rupee will erase Friday's gains, driven by safer
action, as the Russian president orders a nuclear emergency to his troops and
Western countries respond with new punishments.
"Western
sanctions on Russia were substantially enhanced over the weekend, leading to a
risk-aversion sell-off in markets at the Asian open," noted Jeffrey
Halley, a senior market analyst at OANDA, a leader in currency data.
“Crude remains
supported by supply concerns as western sanctions are likely to impact Russian
trade even though no direct restrictions are put on energy exports yet,"
said Ravindra Rao, Head Commodity Research at Kotak Securities.
After rising
oil prices, the rupee fell 0.5% at the start of trading on Monday to $ 75.73 a
share from closing at 75.33 in the previous session.
The Indian
currency jumped almost 0.5% on Friday after suffering the worst session in more
than 10 months the day before.
Russia's
increased sanctions in the West in response to Putin's main attack on the
European state since World War II have led to danger avoidance and austerity
for the fourth day in a row.
This increase
in flight safety offers has strengthened the US dollar and only.
Domestic stock
markets also started the week in the red, as the BSE Sensex index raised by
1,000 points.
The inflow of
capital did not help either, net sellers of foreign institutional investors
(FII) entered the Indian capital market on Friday. According to stock market
data, the shares listed on the FII were worth 4,470.70 million ₹.