The Indian rupee has fallen sharply and reached a new all-time low.
On Thursday morning, the rupee dropped by 32 paise to ₹95.20 against the US dollar.
This is the weakest level ever for the Indian currency.
The fall is mainly due to rising global tensions and increasing crude oil prices.
Why Is the Rupee Falling?
There are a few key reasons behind this decline.
First, global tensions, especially in West Asia, have made investors nervous.
In such situations, people prefer to invest in safer assets like the US dollar.
Second, crude oil prices have increased sharply.
India imports a large amount of oil, so higher prices mean higher expenses for the country.
This puts pressure on the rupee.
Also, the US Federal Reserve has decided to keep interest rates unchanged.
This has strengthened the US dollar further.
Tensions between the US and Iran have also increased demand for the dollar, making the rupee weaker.
How Did the Rupee Move Today?
In early trading, the rupee opened at 95.01 against the dollar.
Soon after, it slipped further to 95.20, marking a sharp fall of 32 paise.
Just a day before, the rupee had already fallen by 20 paise to close at 94.88, which was then its lowest level.
Meanwhile, the dollar index, which tracks the US dollar against other major currencies, remained slightly higher at 98.96.
Crude Oil Prices at 4-Year High
Brent Crude prices have surged nearly 7%, reaching around $126 per barrel.
This is the highest level in almost four years.
Rising oil prices are one of the biggest reasons behind the rupee’s fall, as they increase India’s import bill and create pressure on the economy.
What Could Happen Next?
Experts believe the rupee may weaken further if crude oil prices continue to rise.
Global tensions and strong demand for the US dollar may also keep the rupee under pressure in the coming days.
