Rupee crashes to historic low amid deepening global turmoil

Mumbai: The Indian rupee plunged to its weakest-ever level on Tuesday, deepening fears of a widening economic crisis as global tensions linked to the ongoing US-Iran conflict continued to batter financial markets. The rupee touched a historic low of 96.45 against the US dollar, marking its sharpest fall yet amid rising geopolitical uncertainty and soaring crude oil prices.

The currency had already opened weak in the interbank foreign exchange market, slipping 18 paise to 96.38 against the dollar shortly after trading began. However, the rupee continued to deteriorate further during the session after closing at 96.20 on Monday. The fresh collapse has intensified pressure on India’s domestic markets, which are already struggling under global economic instability.

Market analysts pointed to the escalating tensions surrounding Iran, disruptions linked to the Strait of Hormuz and the sharp rise in crude oil prices as the main reasons behind the rupee’s fall. Concerns over interruptions to exports and imports involving Gulf nations have further worsened investor sentiment and increased fears over India’s trade and energy security.

Despite attempts by the Reserve Bank of India and the central government to stabilise the currency through intervention measures, the decline has continued unchecked. Although the dollar index slightly eased to 99.10, global markets remained fragile because of continuing conflict-related uncertainty in West Asia, preventing the rupee from gaining any relief.

Experts warned that India’s heavy dependence on crude oil imports has made the country particularly vulnerable to disruptions in the Hormuz Strait. With energy costs rising and foreign exchange pressure mounting, concerns are growing that the rupee’s record crash could further fuel inflation, import costs and broader economic distress across the country.