FX.co ★ Indian Rupee Hits Lowest on Record

The Indian rupee weakened to around 92 per dollar, its lowest level on record, as surging global oil prices and a stronger US dollar pressured the currency. Brent crude rose above $85 a barrel following US-Israeli strikes on Iran, stoking concerns over potential supply disruptions through the Strait of Hormuz, a critical corridor for India’s oil and LNG imports. Elevated crude prices risk widening India’s current account deficit and increasing dollar demand from importers. At the same time, rising risk aversion prompted investors to pull more than $350 million from Indian equities on Monday, while intensified safe-haven flows further lifted the dollar. In response, the RBI intervened in both the spot and forward markets to curb excessive volatility and stabilize the rupee. Over the longer term, India’s efforts to diversify its energy sources, including renewed LNG ties with Canada, could help alleviate structural pressures on the currency.