Rupee hits record low against US dollar amid oil price surge, global tensions

The Indian rupee fell to a fresh record low against the US dollar on Wednesday, breaching the ₹92 mark amid rising crude oil prices and heightened global market uncertainty, as per reports.

The currency was reportedly trading at ₹92.17 against the dollar at around 10:40 am, as escalating geopolitical tensions involving the United States, Israel and Iran unsettled financial markets and dampened investor sentiment.

Dealers reportedly said the rupee came under sustained pressure as investors turned risk-averse following the intensifying conflict in West Asia. A sharp rise in crude oil prices and a strengthening US dollar further weighed on emerging market currencies, including the rupee.

A key factor behind the currency’s weakness has been the surge in oil prices amid fears of supply disruptions in the Middle East, a region that accounts for a significant share of global energy exports. Growing concerns over potential interruptions to oil flows have pushed prices higher in recent sessions.

As per reports, India imports nearly 85% of its crude oil requirements, making it particularly vulnerable to sustained increases in global prices. Higher crude costs typically expand the country’s import bill, fuel inflationary pressures and exert downward pressure on the rupee.

Reports citing analysts warned that a prolonged spike in oil prices could widen India’s current account deficit and weigh on economic growth, adding further strain on the currency.

The rupee’s slide also coincided with broad-based strength in the US dollar as investors sought the American currency as a safe-haven asset amid rising geopolitical uncertainty.