Rupee falls to all-time low of 95.40 against US dollar amid global oil price surge

The Indian rupee fell to a record low of 95.40 against the US dollar in early trade on Tuesday, extending its decline after closing at its weakest-ever level in the previous session. The currency dropped by 17 paise during early trading, following a sharp fall of 39 paise on Monday when it settled at 95.23 against the dollar.

The continued depreciation comes amid heightened global uncertainty driven by escalating tensions in the Middle East, which have kept crude oil prices elevated. Rising oil costs have intensified concerns over inflation and economic slowdown, placing sustained pressure on the rupee and broader financial markets.

During Monday’s session, the rupee opened at 94.95 in the interbank foreign exchange market and weakened steadily throughout the day. The negative sentiment was also reflected in the equity markets, with benchmark indices trading in the red. The BSE Sensex slipped below key levels, while the NSE Nifty50 also recorded declines during early trading hours.

Market participants attributed the rupee’s weakness to a combination of strong dollar demand, high crude oil prices, and concerns over India’s trade balance. Analysts indicated that persistent pressure could push the currency further, with short-term levels expected to remain under strain if current global conditions continue.

In the commodities market, crude oil prices remained elevated at around $113–$114 per barrel amid fresh tensions in the Strait of Hormuz, raising fears over supply disruptions. The sustained rise in oil prices, coupled with global risk aversion, has contributed to cautious investor sentiment and ongoing volatility in both currency and equity markets.