Indian Rupee Hits Record Low Amid Rising Oil Prices and US-Iran Tensions

Rupee Declines to Historic Low

Mumbai, April 30: The Indian rupee has fallen past the 95-per-dollar threshold, reaching an unprecedented low on Thursday, primarily due to a significant increase in global crude oil prices amidst escalating tensions between the United States and Iran.

During early trading, the rupee hit a record low of 95.07, later dipping to an intraday low of 95.126 against the US dollar, before further declining to approximately 95.20 throughout the trading session.

This depreciation follows aggressive signals from the US Federal Reserve, which have bolstered the dollar and increased US bond yields. The central bank, led by Jerome Powell, opted to maintain the current benchmark interest rates during its latest policy meeting.

Since the beginning of 2026, the rupee has depreciated by around 5.8 percent.

In the meantime, crude oil prices have continued to rise, extending their gains from the highest closing figures in nearly four years, as the US has intensified its stance against Iran. Washington has indicated that it will not ease its naval blockade and has taken steps to seize tankers associated with Tehran, raising concerns about potential supply disruptions.

Brent crude oil prices hovered near $0 per barrel after surging over 6 percent on Wednesday, reaching their highest level since June 2022. On Thursday, prices were around $4.10 per barrel, reflecting an increase of about 3 percent from the previous close.

Similarly, US West Texas Intermediate (WTI) was trading above $7, last recorded at $0.28 per barrel, also up by approximately 3 percent.

US President Donald Trump has stated that the naval blockade of Iran’s ports will remain until a nuclear agreement is finalized, while Iranian officials have not indicated any willingness to compromise.

The negative sentiment surrounding the currency was mirrored in the domestic equity markets, with both Sensex and Nifty dropping nearly 1 percent during early trading.