Rupee Falls to Record Low, Crosses 92 Against Dollar Amid Middle East Tensions
NEW DELHI — The Indian rupee fell to a record low on Wednesday, crossing the 92-per-dollar mark as rising oil prices and escalating conflict in the Middle East weighed heavily on the currency.
The rupee was trading at 92.38 against the U.S. dollar, weakening by 35 paise, or about 0.38 percent, from the previous session.
The sharp decline comes as crude oil prices surged amid growing military tensions involving the United States, Israel and Iran.
Brent crude prices recently climbed as high as $85 per barrel, while West Texas Intermediate crude rose above $75 per barrel on Wednesday, extending a two-day gain of roughly 11 percent.
Brent was trading near $81 per barrel as concerns mounted over shipping disruptions in the Strait of Hormuz, a key global energy corridor.
Any prolonged disruption in the strait could have significant consequences for India, which relies on the route for nearly 40 percent of its energy imports.
Currency and fixed-income markets in India had remained closed Monday due to the Holi public holiday, adding to volatility when trading resumed.
Market analysts advised importers to wait for dips before buying dollars and to closely monitor any potential intervention by the Reserve Bank of India.
Analysts also pointed to key technical levels for the currency.
“The broader bias remains constructive as long as the pair holds above the 90.8–91 support region,” one analyst said.
Another market participant said a sustained move above 92.20 could push the rupee further toward the 92.50–92.80 range, potentially triggering fresh record lows if risk-off sentiment and oil-driven dollar strength continue.
A recent report by Bajaj Finserv Asset Management Company said the rupee had already been under pressure due to a combination of factors including steep U.S. tariffs, geopolitical uncertainty and continued foreign portfolio investor outflows.
Despite those pressures, the report said India’s domestic economic environment — marked by steady growth and moderate inflation — has remained relatively supportive.
Market sentiment had improved somewhat following announcements of a new India–U.S. trade agreement, though the currency has since come under renewed pressure as the Middle East conflict escalated.
Iran’s retaliatory strikes on oil and gas facilities have heightened fears of supply disruptions and rising inflation, after Tehran reportedly targeted energy infrastructure in Saudi Arabia and threatened shipping through the Strait of Hormuz. (Source: IANS)
