Rupee hits record low of 95.63 against US Dollar as global crude prices surge
The Indian rupee today slipped to an all-time low, closing at 95.63 (provisional) against the US dollar amid rising global uncertainty and surging crude oil prices.
The domestic currency depreciated by 35 paise as renewed geopolitical tensions between the United States and Iran triggered risk aversion in global financial markets.
Forex traders said sentiment remained weak as fears grew that the prolonged conflict could further tighten global supply chains, especially after US President Donald Trump rejected Iran’s latest response to a proposed peace deal, calling it “totally unacceptable.”
At the interbank foreign exchange market, the rupee opened at 95.57 and weakened further during the session to touch an intraday low of 95.74 before settling at its record closing low.
On Monday, the rupee had already fallen sharply by 79 paise to close at 95.28 against the dollar, highlighting sustained pressure on the currency.
Analysts noted that rising crude oil prices, a stronger US dollar, and global uncertainty are key factors weighing on the rupee. Brent crude surged over 3% to cross USD 107 per barrel, raising concerns over import costs and India’s trade deficit.
Market participants also pointed to Prime Minister Narendra Modi’s recent appeal to conserve fuel and reduce imports as an acknowledgment of potential external pressure on India’s economy if energy prices remain elevated.
According to experts, the Reserve Bank of India (RBI) may intervene to prevent excessive volatility, though the rupee is expected to remain under pressure in the near term.
Meanwhile, domestic equity markets also witnessed heavy selling, with the Sensex falling over 1,400 points and the Nifty dropping sharply amid broad-based losses.
Foreign institutional investors continued to offload equities, adding further pressure on Indian financial markets.
