For the first time, the Indian rupee has crossed the â¹94 mark against the US dollar in offshore trade, reflecting growing pressure on the Indian currency amid global uncertainty.
Onshore trading, however, saw the rupee fall to a record low of around 93.73 against the dollar. Rising crude oil prices, geopolitical tensions in West Asia, and strong demand for dollars have all contributed to the sharp fall in the rupee.
The rupee’s weakness has become a major talking point because India depends heavily on imports, especially crude oil.
When the rupee falls, the cost of imports goes up, which can lead to higher fuel prices and push inflation upward.
Analysts say the ongoing war-related uncertainty and pressure on India’s trade balance are among the key reasons behind this depreciation.
The latest fall marks a fresh record low for the Indian currency. Just a day earlier, the rupee had already breached the 93-per-dollar level for the first time.
Market experts warn that if oil prices remain high and geopolitical tensions continue, the rupee could stay under pressure in the coming weeks.
This sharp decline is likely to affect common people as well. A weaker rupee can make imported goods more expensive, including fuel, electronics, and some essential items. That, in turn, may increase inflationary pressure in the country.