Rupee hits record low as oil surge and Iran tensions unsettle markets
Currency falls 69 paise against the dollar while equities slide and foreign outflows persist
The Indian rupee plunged to a record low in early trading on Wednesday as soaring crude oil prices and escalating tensions between the United States and Iran dampened investor confidence.
The currency weakened by 69 paise to touch 92.18 against the US dollar in initial deals, after opening at 92.05 in the interbank foreign exchange market. It had previously closed at 91.49 on Monday, with markets shut on Tuesday for the Holi holiday.
Foreign exchange dealers said the sharp rise in global oil prices has intensified pressure on the domestic unit. Brent crude futures climbed above $82 a barrel amid concerns that the worsening geopolitical situation could disrupt supplies, adding to uncertainty across financial markets.
Traders noted that the dollar–rupee pair remains under strain as investors shift towards traditional safe-haven assets. Continued foreign capital outflows from Indian equities and concerns over a swelling import bill have also weighed on sentiment.
The dollar index, which measures the US currency against a basket of six major peers, edged up 0.03 per cent to 99.08, signalling steady global demand for the greenback.
Analysts cautioned that India is particularly vulnerable to higher oil prices, as around 85 per cent of its fuel needs are met through imports. A sustained rally in crude could significantly raise the country’s import costs, widen the trade deficit and add to inflationary pressures.
Domestic equities mirrored the currency’s weakness. The BSE Sensex fell 1,671.39 points, or 2.08 per cent, to 78,567.46 in early trade, while the Nifty 50 declined 502.35 points, or 2.02 per cent, to 24,363.35.
Exchange data showed that foreign institutional investors were net sellers on Monday, offloading shares worth Rs 3,295.64 crore, adding to the downward pressure on markets.
With geopolitical risks intensifying and oil prices climbing, traders expect the rupee to remain volatile in the near term as global uncertainties continue to dominate sentiment.
With PTI inputs