Rupee hits record low of Rs 92.17 against US dollar as war fears rattle markets
India Today
The rupee came under pressure as escalating tensions between the US, Israel and Iran triggered global risk aversion, while rising crude oil prices and a stronger dollar weighed on emerging market currencies.
The Indian rupee weakened sharply on Wednesday, breaching the Rs 92 mark against the US dollar, as rising geopolitical tensions and surging crude oil prices rattled global financial markets. The currency was trading at Rs 92.17 against the dollar as of 10:40 am.
The rupee came under pressure after the escalating conflict involving the United States, Israel and Iran triggered risk aversion among investors worldwide.
A surge in crude oil prices and a stronger dollar further weighed on emerging market currencies, including the rupee.
A key factor behind the rupee’s weakness is the sharp rise in crude oil prices amid fears of supply disruptions in the Middle East. The region accounts for a large share of global energy exports, and escalating tensions have raised concerns about potential disruptions to oil supplies.
India imports nearly 85% of its crude oil requirements, making the economy particularly vulnerable to sustained increases in oil prices. Higher crude prices typically widen the country’s import bill, increase inflationary pressures and weaken the currency.
A prolonged surge in oil prices could also widen India’s current account deficit and weigh on economic growth, further adding pressure on the rupee.
Sensex has declined over 6,000 points or roughly 7.5% in a little over two weeks as global tensions and rising oil prices triggered selling in equities.
Speaking in Parliament, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India has adequate fuel stocks, and there is no cause for concern over availability.
Industry sources told India Today TV that airline operators are now paying additional insurance charges for every aircraft flying into the Middle East, significantly increasing the cost of operations on these routes.
Under law, a domestic household is generally allowed to keep two LPG cylinders of 14.2 kg each at a time. This usually includes one cylinder connected for use and another spare cylinder kept as backup.
Early signals from GIFT Nifty suggest that the benchmark indices could open lower when trading begins. GIFT Nifty futures were trading at 23,784.50 at around 7:58 am. This indicates that the Nifty 50 may open below Wednesday's closing level of 23,866.85.
When markets fall sharply, fear often takes over investing decisions. But did you know continuing SIPs during market crashes has historically rewarded disciplined investors?
The move comes as global energy markets remain on edge due to escalating tensions linked to the conflict involving Iran, which has raised fears of disruptions to crude oil shipments from the Middle East.
India consumes roughly 5.3 to 5.5 million barrels of crude oil every day. However, domestic production is only about 0.6 million barrels per day. This means the country depends on imports for nearly 85% of its oil needs.
At around 10:47 am, the BSE Sensex was down 750.68 points or 0.96% at 77,455.30, while the Nifty 50 slipped 208.25 points or 0.86% to 24,053.35.
Air India said the fuel surcharge is due to the sharp rise in aviation turbine fuel (ATF) prices since early March 2026, triggered by supply disruptions in the Gulf region.
Rahul Bhatia expressed gratitude to employees who worked tirelessly to restore operations during that challenging period, praising their resilience and dedication.
The Iran-US conflict has disrupted shipping through a key global oil export route, pushing oil prices higher. As a result, airline tickets on some routes have become much more expensive, and there are growing concerns that travel demand could weaken if the situation continues.