Rupee Plummets to Record Low Amid Oil Price Surge

The Indian rupee has fallen to a new low of 96.13 against the US dollar, driven by high crude oil prices and continuous foreign fund outflows.

Elevated crude oil prices are putting pressure on the rupee, with Brent crude trading at $106.87 per barrel, up 1.51% in futures trade amid concerns over disruptions to crude supplies through the Strait of Hormuz.

The rupee has been under pressure due to a combination of firm oil and rising US nominal and real yields, which are drawing portfolio flows out of emerging markets, including India, according to forex traders.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, predicts that the rupee could see 96.50 in coming days, with major support at 95.50.