The Indian rupee fell to a record low against the US dollar on Monday, as escalating tensions in the Middle East and concerns over energy supply disruptions weighed heavily on markets.
As reported by AzerNEWS, citing Reuters, the rupee weakened to 93.84 per dollar, surpassing its previous record low of 93.7350 set last Friday.
The pressure was not limited to India. Most Asian currencies also declined, losing between 0.1% and 0.8%, reflecting broader regional vulnerability to rising geopolitical risks.
Market sentiment deteriorated further as hopes for de-escalation faded, with the standoff between the United States and Iran entering its fourth week. The prolonged conflict has intensified uncertainty and heightened fears of a wider economic fallout.
Rising tensions in the Middle East have driven a sharp increase in global oil prices, adding to inflationary pressures for energy-importing economies. The International Energy Agency warned that the current situation could surpass the severity of the twin oil shocks of the 1970s.
The rupee remains one of the most vulnerable currencies in the region due to India’s heavy reliance on imported energy. Since the onset of the conflict, the currency has depreciated by approximately 3%.
