Rupee falls 27 paise to close at 95.65 against U.S. dollar
The Indian rupee declined by 27 paise to settle at an all-time low of 95.65 against the U.S. dollar on Monday. Increased geopolitical volatility and rising crude oil costs continue to weigh heavily on emerging market currencies.
The rupee experienced significant downward pressure as renewed drone and missile strikes between the U.S. and Iran intensified, sparking global supply concerns. This escalation in geopolitical tension led to a surge in safe-haven demand for the American greenback, further straining the local unit.
Market analysts noted that elevated crude oil prices played a critical role in the currency's slide, as India remains a major importer of energy resources. The rising costs have triggered substantial capital outflows from domestic markets as investors move toward more stable assets.
By the end of the trading session, the rupee had lost 27 paise from its previous close to finish at 95.65. Forex traders expect volatility to persist if regional instability in the Middle East continues to impact global trade routes and oil production. Source: Forex traders.
