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Indian rupee hits record low of 96.47 against US dollar, extending losses as strong greenback and pressure on Indias foreign exchange reserves weigh on the currency
Rupee weakens further
The Indian rupee slipped to a record low of 96.47 against the US dollar on Tuesday, extending its losses amid continued strength in the greenback and rising pressure on India’s foreign exchange reserves.
Forex market participants said fears of a potential disruption in the Strait of Hormuz have heightened concerns over India’s trade balance and energy supplies, as the country relies heavily on crude imports from Gulf economies.
Traders noted that rising crude oil prices are likely to widen India’s import burden, while ongoing geopolitical tensions and global uncertainty continue to weigh on investor confidence.
The dollar index, which measures the US currency against a basket of six major currencies, edged slightly lower to 99.10 on Tuesday. Despite the mild dip, investor sentiment across global markets remained cautious amid persistent geopolitical tensions involving Iran.
At the same time, state-owned fuel retailers once again raised petrol and diesel prices, marking the second hike within a week, as soaring crude oil prices continued to increase pressure on refiners due to the ongoing conflict in the Middle East.
In the national capital, petrol prices climbed about 0.9 per cent to Rs 98.64 per litre, while diesel rates rose nearly 1 per cent to Rs 91.58 per litre. The latest increase follows Friday’s nationwide fuel price revision — the first in almost four years — which pushed retail fuel rates to their highest level since May 2022.
India’s heavy dependence on imported crude, particularly from Middle Eastern suppliers, has left the economy exposed to volatility in global oil markets. Analysts believe higher crude prices could intensify inflationary pressures, widen the trade deficit and weigh further on the rupee.
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