Rupee plummets amid Middle East conflict concerns

Business Jun 19, 2025

The Indian rupee just slid to its lowest point since March, closing at 86.7225 against the US dollar.
This drop comes as tensions heat up in the Middle East, with recent Israeli and Iranian attacks raising fears of a bigger conflict—and pushing global oil prices close to $77 a barrel.

Higher crude prices can hit the economy hard

Since India imports most of its oil, higher crude prices can hit the economy hard—ANZ Research says every $10 jump adds 0.4% to the current account deficit.
The uncertainty has nudged bond yields up and caused a small dip in the stock market too.
Experts warn oil could stay pricey or even spike further if things get worse, meaning more pressure on the rupee ahead.