Rupee Crashes to Record Low Amid Oil Price Surge

The Indian rupee has reached its lowest level in recent history, trading at 96.56 per dollar on Friday, just shy of its all-time low of 96.96 set in late May.

Elevated oil prices and geopolitical risks are putting pressure on the currency, prompting the Reserve Bank of India (RBI) to defend the 96.55-96.60 zone aggressively.

Traders expect a further rise in oil prices or any fresh negative development could test how far the RBI is prepared to intervene.

Banks have collectively raised $20.7 billion under special incentive windows for FCNR(B) and external commercial borrowing swap schemes, which has helped manage the rupee around 96.50 levels.