Indian rupee plunges to record low amid Middle East tensions. The rupee fell to 94.83 per dollar on Friday, marking its weakest level ever and extending losses to over 10% since March 2025. The currency decline reflects growing concerns about energy supply disruptions from the prolonged Iran conflict, which has sent oil prices surging and rattled global markets. India's benchmark Nifty 50 index dropped 1.7% while bond yields climbed to their highest level since August 2024. Analysts warn the rupee could breach 98 per dollar this year if geopolitical tensions persist. The Reserve Bank of India's interventions appear less aggressive, signaling a shift toward managing inflation rather than defending the currency. Weaker growth forecasts and potential rate hikes loom as spillover effects from the crisis threaten economic stability across the region.
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