Rupee falls 11 paise to 96.36 against US dollar amid US-Iran tensions, rising crude
The Indian Rupee fell 11 paise against the US dollar due to rising crude oil prices and geopolitical tensions in the Middle East. Market volatility is being monitored by the RBI, which is using measures to attract foreign inflows to stabilize the currency.
Why it matters
Currency fluctuations impact inflation and the cost of imports, particularly for energy-dependent economies like India.
Rupee came under pressure in early trade on Wednesday, opening 11 paise lower at 96.36 against the US dollar. The slump came as rising crude oil prices and increased demand for safe-haven assets weighed down the currency.Earlier on Tuesday, rupee had ended at 96.25 against the greenback before slipping at the opening of the interbank foreign exchange market.Market participants attributed the weakness to renewed geopolitical tensions that have kept energy markets on edge. Forex traders said worries over the security of oil shipments through the Red Sea and the Strait of Hormuz continue to underpin crude prices.
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