Rupee Falls Below ₹96 Per Dollar as Rising Oil Prices Deepen Economic Concerns

The Indian rupee fell past the ₹96-per-dollar mark on Tuesday, touching a two-month low as surging crude oil prices intensified concerns over the impact on India’s import-dependent economy.

The rupee declined nearly 0.2% to ₹96.1450 against the US dollar during the day.

Meanwhile, Brent crude oil prices climbed more than 1.5% to around $107 per barrel. Concerns over potential disruptions to energy supplies from the Middle East, amid the ongoing US-Iran conflict, outweighed signs of a recovery in crude exports from the region.

Foreign Outflows Add Pressure

Rising oil prices have also weighed on Indian equities and bonds. Foreign investors have reportedly withdrawn around $3.7 billion from Indian markets so far in September, adding further pressure on the rupee.

Higher crude prices are a concern for India because the country relies heavily on imported oil to meet its energy requirements. A sustained rise in global oil prices could increase the country’s import bill and put additional pressure on the currency.