The Indian rupee slipped to a fresh all-time low of 95.50 against the US dollar on Tuesday as concerns over rising global crude oil prices and escalating tensions in West Asia continued to weigh heavily on currency markets.
The sharp decline followed comments by Donald Trump suggesting that the ceasefire with Iran was “on life support”, triggering renewed fears of a prolonged conflict in the region and potential disruption to global energy supplies.
Market concerns intensified over the possibility of instability around the strategic Strait of Hormuz, a key global oil transit route through which a major portion of the world’s crude supply passes. The uncertainty pushed international crude oil prices higher, increasing pressure on oil-importing economies such as India.
At the same time, the US dollar strengthened globally, with the dollar index climbing back near the 98 mark amid growing demand for safe-haven assets during geopolitical uncertainty.
A weaker rupee raises the cost of imports for India, especially crude oil, which can further impact inflation, fuel prices and the country’s trade balance. Analysts believe continued volatility in oil markets and geopolitical tensions could keep pressure on the Indian currency in the near term.
The rupee’s fall comes amid broader concerns over India’s foreign exchange outflows and rising import bills linked to elevated energy prices caused by the ongoing US-Iran conflict.