Mumbai — The Indian rupee slid to an unprecedented low on Friday, breaching the ₹93 mark against the US dollar for the first time, as global and domestic factors combined to weaken the currency.
The sharp decline comes amid a surge in crude oil prices, driven by escalating tensions in West Asia that have disrupted supply chains and heightened fears of prolonged instability. Brent crude trading above $100 per barrel has significantly increased India’s import costs, boosting demand for the US dollar and weighing on the rupee.
Global market sentiment has also turned cautious, with investors shifting funds դեպի safer assets such as the dollar. This risk-off environment has impacted emerging market currencies broadly, with the rupee among the worst affected.
Adding to the pressure, foreign institutional investors have continued to pull out funds from Indian equities, increasing dollar demand and accelerating the currency’s fall. The US Federal Reserve’s stance on interest rates has further supported the dollar, limiting capital inflows into markets like India.
The weakening rupee raises concerns over imported inflation, particularly in fuel and essential commodities, which could translate into higher costs for businesses and consumers.
Market participants are now watching global developments closely, including crude price trends, geopolitical signals, and potential intervention by the Reserve Bank of India to stabilise the currency.