Context
The rupee hit a fresh record low of ₹92.3 per U.S. dollar, amid West Asia tensions and rising crude prices linked to concerns over the Strait of Hormuz.
Reasons for Rupee Depreciation
- Rising crude oil prices
- Brent near $102/bbl
- WTI above $97/bbl
- Increased India’s import bill and dollar demand.
- Geopolitical tensions
- West Asia conflict
- Hormuz-related uncertainty affecting global markets.
- Higher domestic dollar demand
- Oil companies and importers seeking dollars for payments.
- Capital market pressures
- Weak equity sentiment (Nifty fall)
- Capital outflows.
- Global risk aversion
- Safe-haven shift toward the U.S. dollar strengthened it globally.
