On Tuesday, the Indian rupee hit a record low of 95.4325 per US dollar, reflecting growing economic concerns linked to escalating tensions between the United States and Iran over the Strait of Hormuz, a crucial global energy passage. The currency's decline of up to 0.4% surpassed its previous low of 95.33 reached last Thursday, before stabilizing at 95.28 by the session's end. The surge in Brent crude prices from around $70 to nearly $115 per barrel since the onset of the US-Iran conflict has significantly impacted India's economic outlook, raising fears about inflation and the current account deficit. Analysts at MUFG anticipate the rupee may fluctuate between 95-96 unless the conflict escalates, potentially dropping to 97-98 in a risk scenario. The Reserve Bank of India is reportedly exploring measures to increase dollar inflows to strengthen its foreign exchange reserves and curb the rupee's decline. The central bank's interventions in the forex market have been evident, with a notable increase in its short dollar forward commitments exceeding $100 billion. As Asian governments seek to mitigate the energy crisis triggered by the conflict, the situation remains precarious for the rupee and the broader economy.