Rupee Hits Record Low As Dollar Strengthens, Oil Prices Climb

India-West News Desk

MUMBAI-The Indian rupee fell to a record low of 96.25 against the U.S. dollar on May 18 as rising crude oil prices, a stronger dollar, and geopolitical tensions added pressure on the currency. The rupee opened 21 paise lower in the interbank foreign exchange market before extending losses during early trade.

The decline follows recent trading sessions in which the rupee crossed the 96-per-dollar mark for the first time on May 15. The currency later traded around 96.17 against the dollar, compared with its previous close of 95.96.

One of the main factors weighing on the rupee was the rise in global oil prices, the Western media noted. Brent crude climbed above $111 per barrel after reports of an attack on a nuclear facility in the United Arab Emirates raised concerns about potential supply disruptions in the Middle East.

India’s dependence on imported crude oil leaves the rupee vulnerable to rising energy prices. Higher oil costs increase the country’s import bill, raise demand for U.S. dollars, and widen the current account deficit, Reuters noted.