Business
Rupee Under Pressure on West Asia Tensions and Rising Imports
The Indian Rupee depreciated by 32 paise to hit an all-time low of 95.20 against the US Dollar in early trade on Thursday, weighed down by elevated global crude prices and a strengthening American currency.
Forex traders said rising prices of Brent crude, which are hovering around 122 US dollars per barrel, are likely to increase India’s import bill, putting additional pressure on the rupee.
Market sentiment has also been impacted by geopolitical tensions in West Asia, with fears of a wider conflict driving investor caution.
Meanwhile, the US dollar strengthened further after the Federal Reserve kept interest rates unchanged. Safe-haven demand for the dollar has also risen amid diplomatic strains between Washington and Iran.