Summary:
- The rupee dropped to 83.99 per dollar, marking its lowest point ever.
- Rising oil prices and foreign fund outflows contributed to the rupee’s weakening.
- Oil demand surged due to Israel-Iran tensions and Hurricane Milton’s impact in Florida.
Rupee Falls to All-Time Low Against Dollar Amid Oil Price Surge
The Indian rupee weakened to its lowest level ever against the US dollar, hitting 83.99 per dollar on Friday. This marked a new all-time low, surpassing the previous record of 83.9850 on September 12. The rupee had recovered slightly to 83.50 two weeks ago but dropped again due to rising oil prices and the ongoing outflow of foreign funds from Indian markets.
Experts point to increasing concerns over potential supply disruptions in the oil market, triggered by tensions between Israel and Iran. Additionally, Florida’s Hurricane Milton has caused a spike in fuel demand. The storm, which hit Florida’s west coast, brought heavy rainfall, tornadoes, and potential flooding, which have contributed to the surge in oil prices.
“Crude oil prices spiked by over 3% recently due to concerns about disruptions in the Middle East and increased fuel demand following Hurricane Milton in Florida,” said Saish Sandeep Sawant Dessai, an analyst at Angel One. He also noted that further escalation between Israel and Iran could push crude oil prices higher, adding pressure on the rupee.
