Indian Rupee Hits Record Low of 95.63 vs USD

The Indian rupee fell to a record low of 95.63 against the US dollar on Tuesday, driven by escalating tensions in the Middle East, surging crude oil prices and sustained foreign investor outflows from Indian markets.

The currency opened around 95.50 and weakened further during the session, breaching its previous low of about 95.43 from the prior week. Traders attributed the decline to heavy dollar demand from oil importers and other sectors, compounded by a more than 40 percent rise in Brent crude prices since late February, when the US-Iran conflict intensified. Brent settled above 105 per barrel amid fears of disruptions near the Strait of Hormuz, a vital oil transit route. India, which imports nearly 85 percent of its crude oil needs, faces heightened vulnerability, with each dollar increase in oil prices adding billions to its import bill.

Domestic equity markets mirrored the pressure, with the Sensex dropping around 800 points intraday before closing down 525 points, or 0.60 percent, at 75,559.99. The Nifty fell 117 points, or 0.49 percent, to 23,699.30, led by declines in IT and banking stocks. Foreign institutional investors have withdrawn over 20 billion dollars from...