Rupee Hits Brink of Record Low as Crude Surges Past $100

The Indian rupee is on the brink of hitting a record low after Brent crude surged past $100 a barrel, putting pressure on the currency. The rupee is expected to open in the 96.85-96.90 range on Friday, according to traders, which would bring it closer to its all-time low of 96.96 set in May.

The sharp rise in crude prices has reversed the fortunes of both oil and the rupee, with Brent crude hovering near $70 a barrel just three weeks ago. The RBI has been intervening regularly in the foreign exchange market to cushion the currency against oil-driven pressures, but its efforts may not be enough to prevent the rupee from sliding further.

India is the world's third-largest oil importer and remains highly exposed to swings in crude prices. The renewed rally in crude threatens to reverse the trend of debt inflows and slow the pace of foreign selling in equities that had been seen since the RBI's recent measures to attract capital inflows.