New Delhi: The rupee fell to a fresh record low on Friday, slipping past the 96 mark against the US Dollar. The plunge comes at the backdrop of rising crude oil prices and the ongoing West Asia conflict that continues to pressure the currency.
The rupee weakened 0.3% to 96.05 against the dollar, crossing its previous all-time low of 95.9575 touched in the previous session.
The Indian currency has been under pressure since the war began due to the increased demand and supply amidst the tensions escalating due to the war at Middle East leading to the blockade of the Strait of Hormuz -a crucial waterway. It emerged as Asia’s weakest-performing currency in recent weeks as India sees rising import bill due to soaring energy costs.
According to market experts, the domestic currency has declined nearly 7% against the US dollar so far this year. Experts also believe the domestic unit may touch the 100 mark if oil prices continue rising.
Recently, the government raised import duties on precious metals. India is one of the world’s largest importers of gold. Higher duties may discourage domestic demand, thereby lowering dollar outflows and supporting the rupee.
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