Rupee Plunges to Fresh Low Amid Escalating Global Tensions
The Indian rupee has depreciated significantly against the US dollar due to escalating Middle East tensions and rising Brent crude oil prices. On Tuesday, the rupee closed at 95.92 (provisional) against the American currency, down 38 paise from its previous close.
This decline is attributed to surging demand for dollars from oil importers, sparking concerns over inflation and India's external trade balance. Weak domestic markets, a strong US dollar, and worries over increasing global treasury yields have also contributed to investor sentiment.
The rupee opened at 95.84 against the US dollar but lost ground throughout the day. The escalating Middle East conflict has put pressure on oil prices, with Brent crude hitting $108 per barrel. This has led to increased demand for dollars from oil importers, further weakening the rupee.