Rupee at ₹95.55 after 59 paise fall amid U.S.-Iran tensions
The rupee took a hit on Wednesday, dropping 59 paise to close at 95.55 against the US dollar, mostly thanks to rising oil prices and the latest U.S.-Iran conflict.
The currency bounced between 94.98 and 95.61 during the day, while weak stock markets at home added to the pressure.
US airstrikes push oil over 6%
After US airstrikes on Iran (in response to attacks in the Strait of Hormuz), oil prices shot up over 6%, making things tougher for India's economy.
Stock markets also slid sharply, with Sensex and Nifty both in the red.
As Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, put it, "Overall, today's rupee weakness was externally driven, mainly by higher crude oil prices, stronger US dollar, and geopolitical uncertainty."
Looks like this trend could stick around for a bit if global tensions keep simmering.