Rupee Slides Near 94 Against Dollar as Oil Prices Surge Amid West Asia Tensions
The Indian rupee hits a record low near 94 per dollar, pressured by rising crude oil prices, a strong dollar and capital outflows.
The Indian rupee has slipped to a record low, trading near the 94 mark against the US dollar, as rising global crude oil prices and geopolitical tensions put pressure on the currency.
On March 22, the rupee hovered around 93.7, marking a sharp decline over the past year. The slide has been largely driven by Brent crude crossing $100 per barrel amid escalating tensions in West Asia. With India importing close to 90% of its oil needs, higher prices are directly impacting the country’s trade balance.
Economists point out that a widening current account deficit estimated at around 1.3% of GDP—along with a strong US dollar and foreign investor outflows, have added to the pressure. The Reserve Bank of India (RBI) has reportedly intervened in the forex market, selling over $15 billion to stabilise the currency.
The weakening rupee has also triggered political reactions. Opposition leaders, including Rahul Gandhi, have warned that the depreciation could translate into higher inflation, especially through increased fuel and import costs.
Market analysts say the situation remains closely tied to global developments, particularly oil prices and geopolitical risks. For consumers, a weaker rupee could mean costlier fuel, travel and imported goods, making household budgets more sensitive in the coming months.