Indian Rupee Hits Record Low Amid Energy Crisis and Strong Dollar
INR settles around record low level as energy crisis deepen
Business Standard
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The Indian rupee fell to a record low of 95.73 against the US dollar, driven by high energy prices and inflation concerns. Despite this, local equities rose, with the Sensex gaining 789.74 points to close at 75,398.72.
- 01The Indian rupee reached a record low of 95.73 against the US dollar.
- 02Elevated oil prices around $100 per barrel are contributing to inflation concerns.
- 03The rupee's decline is influenced by geopolitical tensions affecting crude imports.
- 04Indian equity markets showed resilience, with the Sensex rising 1.06%.
- 05Investors are monitoring the outcome of a summit between U.S. and Chinese leaders.
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The Indian rupee weakened further, settling at a record low of 95.73 against the US dollar on Thursday. This decline is attributed to a combination of a strong dollar and rising inflation driven by high energy prices, with international oil prices hovering around $100 per barrel. Additionally, geopolitical tensions, particularly the crisis in West Asia and the blockade of the Strait of Hormuz, have disrupted crude imports into India, further pressuring the rupee. Despite these challenges, local equities performed well, with the Sensex increasing by 789.74 points (or 1.06%) to close at 75,398.72 and the Nifty gaining 277 points (or 1.18%) to reach 23,689.60. Investors remain cautious, awaiting the outcome of a summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.
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The weakening rupee may lead to higher import costs, affecting prices for consumers and businesses reliant on imported goods.
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