Mumbai: The rupee slumped by 59 paise to close at 95.55 against the US dollar on Wednesday, recording one of its steepest single-day declines in recent months as escalating conflict in West Asia triggered a spike in crude oil prices, strengthened the US dollar and dampened investor sentiment.
The sharp fall followed fresh US military strikes on Iran after Tehran reportedly attacked three ships in the Strait of Hormuz, raising fears of wider disruption to global energy supplies.
The geopolitical escalation sent investors rushing to safe-haven assets and pushed oil prices sharply higher, adding pressure on oil-importing economies such as India.
