Indian rupee hits record low of 95.7950 per dollar
The rupee hit a record low of 95.7950 per dollar as oil prices and debt repayments weighed on the currency. Analysts expect pressure from regional conflict.
India saw its currency fall to a record low of 95.7950 per dollar on Wednesday as energy costs and debt repayments intensified. The rupee has declined more than 5% since the conflict between the United States and Iran began in late February. Sustained currency weakness threatens to widen the current account deficit.
### Energy Shocks Strain the Rupee The closure of the Strait of Hormuz has triggered a supply shock that directly impacts Indian macroeconomics. Brent crude prices have climbed nearly 50% since late February, pressuring a nation that imports over 90% of its oil. Natural gas costs have also risen, with India relying on imports for half of its domestic demand.
