Rupee Hits New Low as Crude Prices Soar, US-Iran Tensions Escalate

The Indian rupee depreciated to a new low on Wednesday, falling 21 paise to 94.95 against the US dollar due to rising crude oil prices and escalating tensions between the US and Iran.

Brent crude, the global oil benchmark, surged to $99.30 per barrel amid fears of disruption to oil flows through the Strait of Hormuz, while the dollar index traded at 98.76, down by 0.03%.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that the rupee is expected to trade with a negative bias due to rising crude oil prices and geopolitical tensions.

'Weak global markets may further pressurise the rupee,' he said. However, a weak dollar may support the rupee at lower levels, according to Choudhary.