The Indian rupee fell below the 96 per dollar level on Tuesday, touching a two-month low as rising crude oil prices increased concerns over the impact on India’s import-dependent economy.
The rupee weakened to 96.1450 per dollar, down nearly 0.2% during the session, according to Reuters.
Brent crude rose more than 1.5% to around $107 a barrel, as concerns over potential disruptions to Middle East energy supplies linked to the US-Iran conflict outweighed signs of recovering crude exports from the region.
Higher oil prices are raising worries about India’s import bill and broader economic pressures, with the country being a major net importer of energy.
The rise in oil prices has also weighed on Indian equities and bonds, adding to pressure on the domestic currency. Foreign investors have withdrawn around $3.7 billion from Indian markets so far in September, according to the reports.
Market participants are closely watching developments in global oil markets and the US-Iran conflict, as further increases in crude prices could add pressure to the rupee and impact investor sentiment.
The rupee’s move below 96 per dollar marks its weakest level in two months amid renewed concerns over energy costs and foreign capital outflows.
