Indian Rupee Hits Record Low Amid Oil Crisis and Capital Outflows

Indian Rupee Hits Record Low Amid Oil Crisis and Capital Outflows
India's rupee plummeted to a fresh record low of 96.53 against the dollar on Tuesday, driven by elevated crude oil prices and geopolitical tensions in the Middle East. The currency weakened further to an intra-day low of 96.61 before the Reserve Bank of India implemented mild interventions to stem losses. Analysts attribute the sharp depreciation to surging import bills, foreign portfolio investor outflows, and panic buying by importers despite hedged positions. Brent crude oil traded at $100 per barrel, intensifying inflation concerns and pressure on India's fiscal deficit. Since the conflict began, the rupee has depreciated nearly five rupees, with a 3.7% decline already recorded this fiscal year.