Rupee Hits Record Low Amid US-Iran Tensions

The rupee plummeted 56 paise to a historic low of 92.05 against the US dollar as crude oil prices surged due to the US-Iran crisis. The selling of domestic equities and foreign fund withdrawal exacerbated the decline. Inflation fears and high energy costs overshadow the rupee's outlook.

The Indian rupee sank to a record low of 92.05 against the US dollar, driven down by rising crude oil prices amid escalating tensions between the US and Iran. Forex traders pointed to a risk-off global environment as the dollar index surpassed 98 levels, adding further pressure on the rupee.

Massive selling in the domestic equity market, coupled with foreign investors offloading Rs 8,752.65 crore worth of equities, intensified the currency's decline. The rupee closed the session at its all-time low after opening at the same level of 92.05 while reaching an intraday low of 92.35.

The Middle East conflict has triggered a spike in oil prices, inflating India's concerns over rising inflation and fiscal pressure. Experts, including Anil Kumar Bhansali of Finrex Treasury Advisors LLP, attribute these factors to investor hesitance, a bearish bond market, and rising yields.

(With inputs from agencies.)