Elevated crude prices and rising US Treasury yields push USD/INR to fresh lows amid geopolitical tensions in the Middle East.
The Indian Rupee (INR) extended losses against the US Dollar (USD) on Wednesday, nearing an all-time low of 97.00. Persistent pressure stems from surging oil prices, driven by fears of prolonged disruptions in the Strait of Hormuz, a critical chokepoint for global crude supplies.
Oil prices remain elevated, with WTI crude trading around $102.50, up over 50% since the Middle East conflict escalated. India’s heavy reliance on oil imports makes the INR particularly vulnerable to price spikes, exacerbating currency weakness. US-Iran tensions further cloud the outlook, with negotiations stalled over sanctions and nuclear issues.
US President Donald Trump warned of potential military action if Iran fails to agree to a deal, adding to market uncertainty. The rupee’s decline reflects broader concerns over energy security and geopolitical risks.