The Indian rupee fell to a record low on Friday, breaching the 93-mark against the United States dollar amid the conflict in West Asia.
In early trade, the Indian currency fell 19 paise to an intra-day low of 93.08 against the US dollar, reported PTI.
The rupee had opened at 92.92 in the interbank foreign exchange market. It had slumped 49 paise to close at a record low of 92.89 against the US dollar on Wednesday amid concerns about the rising global fuel prices.
The domestic foreign exchange market was closed on Thursday on account of the Gudi Padwa festival.
Foreign institutional investors have also accelerated selling in Indian equities amid the conflict. This has added pressure on the currency. The rupee weakens as global funds pull money out of the Indian market.
Global oil prices have also been rising since the conflict in West Asia broke out.
As of 12.10 pm, the price of benchmark Brent crude was $103 per barrel. The crude oil price had spiked to $119 on Thursday. The price was $78 per barrel on February 27, a day before the conflict started.
Iran has effectively blocked the Strait of Hormuz, the narrow waterbody connecting the Gulf to the Arabian Sea, for most international commercial vessels since the conflict began. About 20% of global petroleum supply passes through the maritime chokepoint.
The global natural gas prices had jumped by nearly 3.5% on Thursday.
The jump in the oil and gas prices followed attacks on Iran’s energy facilities associated with its South Pars gas field, the world’s largest gas reserve that it shares with Qatar. In retaliation, Iran struck several oil and gas facilities in Gulf countries, escalating tensions in the region.
Qatar said that the attacks on its energy installations would reduce its export capacity of liquefied natural gas by 17%. They would take three to five years to repair, minister Saad Sherida Al-Kaabi stated, adding that Qatar will be “compelled to declare force majeure for up to five years on some long-term LNG contracts”.
India was the largest importer of Qatari LNG after China in 2025. The supply disruption caused by the conflict had already triggered concerns and panic in India and globally.
