Indian Rupee Hits Record Low at 93.49 vs USD

The Indian rupee fell to a record low on Friday, breaching the 93 mark against the US dollar for the first time, as escalating geopolitical tensions in West Asia drove up global crude oil prices and prompted foreign investors to pull billions from Indian markets.

In early trade at the interbank foreign exchange in Mumbai, the rupee weakened to as low as 93.49, down about 60 paise from its previous close of 92.89 on Wednesday. Trading had been closed on Thursday for the Gudhi Padwa holiday. The currency's decline marked a nearly 2 percent drop since the start of the conflict in West Asia three weeks earlier, reflecting heightened global risk aversion and India's vulnerability as a major oil importer.

The plunge stemmed primarily from a surge in Brent crude prices, which climbed above 100 dollars per barrel amid attacks on key energy facilities in the region, including disruptions to shipping routes like the Strait of Hormuz. Although prices retreated slightly to around 107 dollars per barrel on Friday following signals of potential eased US sanctions on Iranian oil and international efforts to secure maritime passages, the overall increase has inflated India's import bill. Higher...