India’s rupee weakens to near all-time lows against the dollar amid surging crude prices and higher fuel costs.
The Indian Rupee (INR) extended its decline against the US Dollar (USD) on Tuesday, trading near 96.43, close to Monday’s record high of 96.62. Elevated oil prices, driven by restricted energy flows through the Strait of Hormuz, continue to pressure the currency, with WTI crude trading at $102.16 after hitting a two-week peak of $104.74.
India, a major oil importer, faces currency headwinds in high-crude environments. The government responded by raising petrol and diesel prices by 87 and 91 paise per litre, following a 3-rupee hike last week. Oil-dependent economies typically see currency depreciation amid rising energy costs.
Oil’s rally paused after US President Donald Trump suggested progress in Iran talks, easing supply concerns. However, the rupee’s weakness persists as markets assess the impact of sustained fuel price increases.