New Delhi: The Indian rupee fell to a new record low on Wednesday, breaching the Rs 92 per dollar mark as oil prices surged amid escalating geopolitical tensions in the Middle East.
The domestic currency was trading at Rs 92.38 to the dollar, up 35 paise or 0.38 per cent from the previous session.
Brent crude prices spiked to as much as $85 per barrel in recent days as military tensions between the United States, Israel, and Iran intensified. On Wednesday, WTI crude climbed above $75 a barrel, extending a two-day gain of around 11 per cent, while Brent traded near $81 a barrel amid disruptions to shipping through the Strait of Hormuz, fuelling supply chain concerns.
The closure of the Strait could reportedly disrupt nearly 40 per cent of India’s energy imports.
Currency and fixed income markets were closed on March 3 due to the Holi public holiday. Analysts advised importers to wait for dips before buying dollars and to monitor RBI action on the rupee closely.
“The broader bias remains constructive as long as the pair holds above the 90.8–91 support region. A sustained hold above 92.20 could trigger further upside toward 92.50–92.80, potentially leading to fresh highs if risk-off flows and oil-driven dollar strength persist,” said a market participant.
Bajaj Finserv AMC noted in a recent report that markets have been grappling with steep US tariffs, heightened geopolitical concerns, and persistent foreign portfolio investment pressures, pushing the rupee to an all-time low despite a supportive domestic environment of steady growth and moderate inflation. The report added that sentiment had improved meaningfully following the India–US trade deal announcements.
Iran's retaliatory strikes on oil and gas facilities have further heightened fears of supply disruption, lifting oil prices and stoking inflation worries. Tehran reportedly targeted oil and gas infrastructure in Saudi Arabia and threatened shipping in the strategic Strait of Hormuz.
With IANS inputs