Indian Rupee Hits Record Low as Crude Oil Prices Rise

The Indian rupee has reached a historic low, trading at 83.2675 against the U.S. dollar due to increasing crude oil prices in the international market. The surge in crude oil prices has heightened the demand for dollars in India, which imports about 85 percent of its crude oil needs, necessitating immediate payments in dollars.

Although the Reserve Bank of India (RBI) has been releasing dollars into the market to support the rupee, the currency’s decline persists. Foreign investments in Indian stock markets have also helped stabilize the rupee, but this “hot money” is subject to sudden exits. Rising oil prices, driven by supply cuts from Saudi Arabia and Russia, have led to predictions that benchmark Brent crude prices could surpass $100 per barrel this year, posing challenges for India’s economy.