India’s currency weakens to 96.33 against the dollar amid rising oil prices near $103.00 and geopolitical tensions.
The Indian Rupee (INR) fell to an all-time low of 96.33 against the US Dollar (USD) as oil prices climbed nearly 2% to near $103.00. The decline extends a week-long slide, driven by India’s heavy reliance on oil imports, which weighs on the currency in high-price environments.
Oil prices surged after US President Donald Trump threatened Iran with consequences if negotiations fail, escalating geopolitical risks. Reports also indicated potential coordinated US-Israel military action against Iran, further lifting crude markets. Prior to this, stalled talks between Washington and Tehran had already strained relations.
Foreign institutional investors (FIIs) remained net buyers for a second consecutive day, though the broader market impact of the rupee’s decline remains under scrutiny.