Rupee Hits New Low Amid Rising Oil Prices and US-Iran Tensions
The Indian rupee fell to a new low of 94.97 against the US dollar in early trade on Wednesday, due to renewed tensions between the US and Iran, rising oil prices, and higher US Treasury yields.
The depreciation is attributed to the ongoing conflict between the two nations, which has led to increased concerns over disruptions to crude supplies from the Middle East.
Brent crude prices have risen to USD 95.59 per barrel, contributing to the rupee's decline.
Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, noted that the RBI is closely monitoring the rupee's fall as Brent crude prices have risen to USD 95 per barrel and dollar index to 99.70 on a bout of risk aversion on renewed fighting between the US and Iran.
The domestic stock markets also experienced significant declines, with Sensex tanking 788.52 points to 76,155.76 in early trade, while Nifty slumped 269 points to 23,786.80.