The Indian rupee plummeted to a historic low of 96.45 against the US dollar, driven down by soaring global crude oil prices and intensifying geopolitical conflicts in the Middle East. As Brent crude surged past $111 per barrel following a drone strike on a UAE nuclear power plant and stalled US-Iran peace talks, concerns over India’s expanding import bill and widening current account deficit escalated sharply. Because India relies on imports for nearly 90% of its crude requirements, higher energy costs are heavily straining domestic macroeconomic stability, accelerating wholesale inflation to 8.3%, and triggering substantial foreign investor outflows from local equity and debt markets. In response to this rapid currency depreciation, the Reserve Bank of India actively intervened by selling dollars to cushion the slide, while the government implemented strict import curbs on silver to contain the trade deficit. Despite these aggressive regulatory adjustments, market analysts warn that persistent energy disruptions and risk-off global sentiments could keep the local currency under severe pressure in the coming weeks.
Oil Shock Triggers Historic Plunge: Indian Rupee Slumps to All-Time Low of 96.45 Against US Dollar
