The rupee fell to a record low of Rs 93.89 against the US dollar on Monday, as a surge in global crude oil prices and rising geopolitical tensions in West Asia weighed heavily on the currency. The currency slipped below Rs 93 just last week and is now edging towards Rs 94.
Crude prices have surged sharply in recent weeks as the conflict in West Asia intensifies. Prices are now hovering above $110 per barrel, a level that immediately hurts countries like India, which import over 80% of their oil needs.
India pays for oil in dollars. When oil becomes more expensive, the country needs more dollars to buy the same amount of crude. This increases demand for the US dollar and puts pressure on the rupee.
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