USD/INR surges to near 95.60 amid concerns over potential Strait of Hormuz closure disrupting global energy flows.
The Indian Rupee fell to an all-time low against the US Dollar in early trading Tuesday, with USD/INR rising to nearly 95.60. The decline follows escalating tensions between the US and Iran, raising fears of a prolonged closure of the Strait of Hormuz, a key chokepoint for 20% of global oil supplies.
Oil prices, which could spike if the strait remains closed, pose risks for oil-import-dependent economies like India. WTI crude traded flat just below $96.00 amid the uncertainty. US President Donald Trump dismissed Iran’s latest peace proposal as inadequate, warning that a ceasefire is at risk.
Foreign investors continued selling Indian equities, citing concerns over earnings projections amid elevated oil prices and geopolitical instability.