Mumbai: Domestic currency weakened past the 95-per-dollar mark to hit a record low on Thursday, pressured by a sharp rise in global crude oil prices amid escalating tensions between the US and Iran. The currency touched an all-time low of 95.07 in early trade, and slipped to an intraday low of 95.126 against the US dollar, before weakening further to around 95.20 during the session.
The decline also follows hawkish signals from US Federal Reserve policymakers, which have supported the dollar and pushed up US bond yields. The Jerome Powell-led central bank kept benchmark interest rates unchanged at its latest policy meeting. In 2026 so far, the rupee has depreciated about 5.8 per cent. Meanwhile, crude oil prices continued to surge, extending gains from their highest close in nearly four years, as the US intensified pressure on Iran.
Washington has signalled no easing of its naval blockade and moved to seize tankers linked to Tehran, raising fears of prolonged supply disruptions. Brent crude hovered near $120 per barrel after jumping more than 6 per cent on Wednesday to its highest level since June 2022. On Thursday, it was trading around $114.10 per barrel, up about 3 per cent from the previous close.
Similarly, US West Texas Intermediate (WTI) traded above $107 and was last seen at $110.28 per barrel, also higher by around 3 per cent. US President Donald Trump said he would not lift the naval blockade of Iran’s ports until a nuclear deal is reached, while Iranian officials have shown no indication of stepping back. The negative sentiment was also reflected in domestic equity markets, with Sensex and Nifty declining nearly 1 per cent in early trade.
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