The Indian rupee crossed the 96-mark against the US dollar on Friday due to global pressures, escalating crude oil prices, and ongoing geopolitical tensions related to the Iran conflict. The domestic currency started at 95.86 and dropped to 95.94 in early trade after hitting an all-time low of 95.96 previously.
Pressure on the rupee increased as oil marketing companies raised petrol and diesel prices by Rs 3 per litre, impacting India’s import bill due to rising energy costs. Experts note that the rupee has been struggling recently, ranking among the weakest Asian currencies.
Market sentiment remained delicate following inconclusive talks between US President Donald Trump and Chinese President Xi Jinping, especially concerning US-Iran relations. Despite rupee pressure, Indian equity markets displayed resilience, with BSE Sensex climbing 0.62% and Nifty 50 rising by 0.63% to reach 23,839.30.
International benchmark Brent crude surged by 3.46% to $109.38 per barrel, while US West Texas Intermediate (WTI) crude rose by 4% to $105.24 per barrel. Indian oil marketing companies also raised petrol and diesel prices by Rs 3 per litre, although this increase is relatively small compared to the losses incurred by public sector oil companies due to soaring global crude oil prices surpassing $100 per barrel.
