Indian rupee hits record low as Iran war-spurred economic risks mount
- The rupee fell to 92.92 against the US dollar, eclipsing its previous low of 92.63 hit on Wednesday
MUMBAI: The Indian rupee fell to a record low on Friday, deepening losses driven by a disruption of global energy supplies amid the war in the Middle East, which threatens to upset the growth-inflation balance for Asia’s third-largest economy.
The rupee fell to 92.92 against the US dollar, eclipsing its previous low of 92.63 hit on Wednesday.
Oil prices had surged to nearly $120 per barrel on Thursday following attacks on key energy infrastructure in the Gulf region, before retreating on Friday.
Leading European nations and Japan have offered to join efforts to secure safe passage for ships through the Strait of Hormuz and the U.S. has outlined moves to boost oil supply.
The strain on the rupee is unlikely to ease in the near term as worries over the oil price shock have prompted foreign investors to pull out over $8 billion from local stocks so far in March, the largest monthly outflows since January 2025.
A sustained increase in energy prices could hurt India’s growth and lift inflation, economists have said.