Indian Rupee Breaches: The Indian rupee slid past the 93 mark against the US dollar for the first time on Friday, pressured by rising concerns over the impact of the Iran war on global energy supplies. The currency weakened about 0.7 percent to 93.27 in early trade, breaking its previous low of 92.63 recorded earlier this week.
The sharp fall reflects growing worries that higher crude prices could hit India’s growth and push inflation higher, given its heavy dependence on oil imports.
Oil Surge And FII Outflows Add Pressure
The rupee has dropped more than 2 percent since the conflict escalated, tracking a surge in global crude prices. Oil briefly climbed close to $120 per barrel before easing slightly amid efforts to secure shipping routes through the Strait of Hormuz.
Rising energy costs have triggered a strong pullback by foreign investors, who have withdrawn over $8 billion from Indian equities this month, marking the biggest outflow since January 2025. Analysts warn that if the conflict continues, pressure on the rupee could intensify further, with some estimates pointing to a possible slide towards the 95 level.
A Year Of Persistent Headwinds
The currency has been under stress for months, facing multiple challenges including global trade tensions, geopolitical conflicts in key oil-producing regions, and sustained foreign selling in equities.
Over the past year, the rupee has weakened nearly 7 percent against the dollar and has also lost ground against other major currencies such as the euro, pound and yuan. The latest oil shock has also dragged Indian equities to near one-year lows and pushed bond yields higher, raising concerns over widening fiscal and current account deficits.
RBI Steps In To Steady Markets
The Reserve Bank of India has stepped in repeatedly to curb excessive volatility. Analysts estimate that the central bank sold over $50 billion in the forex market between April and December 2025, with interventions likely to continue.
(Via Agency Inputs)
