Mumbai, February 22: Cutting short the three-session rising trend, the rupee today fell sharply by 28 paise against the US currency due to heavy dollar demand from importers on soaring oil prices after mounting tensions in the Middle East.
At the Interbank Foreign Exchange (Forex) market, the domestic currency settled at 45.2650/2750, a loss of 28 paise, or 0.62 per cent, over the previous close.
Worsening Middle East situation and expectations of spreading to neighbouring countries as well as earthquake in New Zealand early today compelled dealers to buy dollars as a safe heaven rather than going for risky assets like stocks.
Spiralling global crude oil prices on geopolitical strain to near USD 94 a barrel in New York yesterday mainly forced importers, mainly oil refiners, to buy dollars for their month-end requirements, which weighed on the rupee. India is a major importer of oil.
–Agencies