Strong Dollar and High Crude Prices Weigh on Indian Currency

The Indian rupee opened on a weak note on Monday and plunged to a fresh all-time low of 96.25 against the US dollar in early trade.

According to forex market data, the rupee opened at 96.19 at the interbank foreign exchange market before slipping further to 96.25, marking a decline of 44 paise from its previous close.

Forex traders attributed the sharp depreciation to elevated global crude oil prices, persistent geopolitical tensions, and continued strength in the US dollar.

Market participants said the combination of rising energy costs and uncertainty in global financial markets has created pressure on emerging market currencies, including the Indian rupee.

Analysts noted that higher crude oil prices remain a major concern for India, which imports a large portion of its energy requirements. A weaker rupee increases import costs and can put additional pressure on inflation and the trade balance.

The strengthening of the US dollar against global currencies has also contributed to the rupee’s decline, as investors continue to prefer safer assets amid uncertainty in international markets.

The movement in the currency market comes amid ongoing tensions in West Asia and disruptions affecting global energy supply routes, particularly around the Strait of Hormuz.

Financial experts said the Reserve Bank of India is expected to continue closely monitoring currency volatility and market conditions.