Mumbai: The Indian rupee slid to a record low on Monday as escalating tensions in the Middle East raised concerns about prolonged disruptions to global energy supplies, posing risks to India’s economic outlook.
Read More: Indian rupee falls past 90 per dollar on trade worries
The currency weakened to 93.84 against the US dollar, surpassing its previous low of 93.7350 recorded just days earlier. The decline reflects growing investor anxiety as geopolitical uncertainty intensifies and oil prices surge sharply.
#BREAKING | Sensex Crashes 1,500 Points, Rupee Hits Fresh Low Amid Hormuz Uncertainty
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Regional currencies across Asia also came under pressure, falling between 0.1 per cent and 0.8 per cent, as hopes for a diplomatic resolution faded. The ongoing conflict, now in its fourth week, has seen heightened rhetoric between United States and Iran, further dampening market sentiment.
A key driver behind the rupee’s depreciation is the steep rise in global oil prices, which have jumped more than 50 per cent this month. According to the International Energy Agency, the current crisis has surpassed the scale of the oil shocks experienced in the 1970s, underscoring its severity.
India, as one of the world’s largest oil importers, is particularly vulnerable to sustained increases in crude prices. The rising import bill is expected to widen the current account deficit and increase inflationary pressures, both of which weigh on the currency.
Read More: SBP releases latest exchange rates for major currencies against PKR
Since the onset of the conflict, the rupee has depreciated by around 3 per cent, making it one of the worst-performing currencies in the region during this period.
Analysts at BofA Global Research now project the rupee to weaken further to 94 against the dollar by June 2026, revising their earlier forecast of 89, assuming the geopolitical crisis continues in the near term.