Sentinel Digital Desk
On Friday, the Indian rupee hit a record low of 83.99 against the US dollar. This was driven by rising oil prices and continued outflow of foreign funds from Indian stock markets. The rupee had previously touched a low of 83.9850 in September.
A major factor behind the rupee's fall is the sharp increase in crude oil prices. Concerns about potential supply disruptions in the Middle East and spikes in fuel demand due to storms in the US have driven prices up, further weakening the rupee.
Hurricane Milton, which hit Florida, caused a surge in gasoline demand, with many fuel stations selling out. This increase in fuel demand has also supported the rise in crude oil prices, putting pressure on global markets.
Saish Sandeep Sawant Dessai, an analyst at Angel One, explained that tensions in the Middle East and supply concerns are likely to keep crude prices high, which could continue affecting the rupee.
With oil prices rising and foreign funds leaving Indian markets, the rupee faces continued pressure. Unless global conditions stabilize, further declines in the rupee's value may be expected.