Rupee Under Pressure: Hits All-Time Low of 93.24 as Brent Crude Holds Above $115

The Indian rupee plunged to a fresh record low on Friday morning, breaching the psychologically significant 93-level for the first time as escalating hostilities in West Asia sent global oil prices surging.

The rupee was trading at 93.24 against the US dollar at 10:33 am IST, down nearly 0.4% from its previous close. This marked the steepest intraday slide in three weeks, driven by aggressive dollar demand from oil importers and a sharp sell-off in domestic equities.

Oil and Geopolitical Headwinds

The primary catalyst for the rupee’s decline is the sustained spike in benchmark Brent crude, which hovered above $115 a barrel on Friday. India, the world’s third-largest oil consumer, is highly vulnerable to energy price shocks, which widen the country’s current account deficit and increase the demand for dollars.

RBI Intervention 

Reserve Bank of India (RBI) likely intervened via state-run banks to provide some dollar liquidity and prevent a "runaway depreciation." Despite these efforts, the rupee remains one of the worst-performing emerging market currencies this week.

If Brent crude touches the $120 mark, the rupee could quickly test the 94.00 level. 

Also read: Iran's Giant South Pars Gas Field At The Centre Of Gulf War Escalation