The Indian rupee on Thursday dropped to a record low of 96.25 against the US dollar early amid the surge in crude oil prices, escalating Iran-US situation, and the closure of the Strait of Hormuz. As per the Forex traders, the rupee is expected to open slightly weaker at 96.26 against the US dollar despite the softening of the greenback at 100.53.
The rupee has come under pressure over the past few days, following the resumption of the US-Iran hostilities in the Strait of Hormuz and disruptions caused by attacks on ships.
India, which imports over 50 per cent of its crude oil and energy from the Gulf, is facing certain economic challenges, especially after the closure of the Strait of Hormuz. It’s pertinent to mention that India imports 90 per cent of its energy and crude oil and remains one of the most import-oriented countries, which puts pressure on the local currency.
Brent Crude was trading at $85.24 a barrel on Thursday and was pushing to extend the gains for the third straight day.
Besides India, the majority of the Asian currencies were trading up despite their stock markets bearing the brunt of the global energy supply disruption triggered by the US-Iran war.
The Malaysian ringgit emerged as the top performer, strengthening 0.18 per cent, followed by the Indonesian rupiah, which gained 0.13 per cent.
The Chinese Yuan appreciated 0.09 per cent, while the Philippine peso rose 0.09 per cent. The Taiwan dollar and Japanese yen advanced 0.07 per cent each, and the Singapore dollar edged up 0.02 per cent.
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