Business
Rupee Falls to Record Low of 95.63 Against US Dollar Amid Crude Oil Surge
Rising West Asia tensions and fears over global oil supply pressure Indian currency markets
The Indian rupee weakened sharply on Tuesday, falling 35 paise to a record low of 95.63 against the US dollar in early trade amid escalating concerns over the West Asia conflict and rising crude oil prices.
Market sentiment turned cautious after Donald Trump stated that the ceasefire efforts involving Iran were “on life support” and expressed fading hopes for a peace agreement.
The remarks triggered fresh fears over global oil supply disruptions, causing crude oil prices to surge in international markets.
Traders said investors were worried that the prolonged 10-week-old conflict could further tighten energy supplies, especially after Trump reportedly rejected Tehran’s latest response to a US-backed peace proposal, describing it as “totally unacceptable”.
At the interbank foreign exchange market, the rupee opened at 95.57 against the US dollar before sliding further to its all-time low of 95.63.
Analysts noted that rising crude prices typically put pressure on the Indian currency because India is heavily dependent on oil imports. Higher oil import bills increase demand for dollars, weakening the rupee.
The depreciation also reflected broader risk aversion in global financial markets as investors moved toward safer assets amid geopolitical uncertainty.
Currency experts believe future movement in the rupee will depend on developments in West Asia, global crude oil trends, and possible interventions by the Reserve Bank of India to stabilise the foreign exchange market.