NEW DELHI, India — The Indian rupee fell to a record low against the U.S. dollar on Thursday, weakening by 30 paise to 92.94 as elevated oil prices and ongoing tensions in the Middle East weighed on the currency.
Foreign institutional investors have sold nearly Rs 74,000 crore in Indian equities over the past 12 trading sessions, adding further pressure on the rupee.
Geopolitical tensions escalated after Iran warned of more severe retaliatory strikes if the U.S. and Israel target its energy facilities again. On Wednesday, Israel struck Iran’s South Pars offshore natural gas field in the Gulf, which it shares with Qatar.
Qatar later reported fires and significant damage at liquefied natural gas facilities following Iranian strikes.
The rupee had already touched a previous low of 92.63 against the U.S. dollar on Wednesday, amid a strengthening dollar and continued foreign fund outflows. At the interbank foreign exchange market, the currency opened at 92.42 and traded in a narrow range before slipping to its all-time low during the session.
Despite periods of stronger risk appetite and softer crude prices earlier, the rupee faced sustained dollar demand from importers. The currency has weakened by more than 1% amid the ongoing Middle East conflict.
Analysts said the macroeconomic backdrop remains challenging, with crude oil prices likely to stay elevated, keeping pressure on the rupee.
Meanwhile, the United States is considering emergency measures to stabilize oil markets, including releasing crude from its strategic reserves and easing restrictions on Iranian oil, as the White House seeks to contain rising prices following disruptions in global supply.
U.S. Treasury Secretary Scott Bessent said the administration had prepared contingency plans in advance of potential chokepoints in global oil flows, particularly around key maritime routes.
The efforts come as Washington faces mounting pressure to respond to rising energy prices following attacks on infrastructure and disruptions to shipping routes. (Source: IANS)
