Rupee hits all-time low of 95.23 vs USD, pummelled by oil surge, Fed's hawkish tilt

The rupee fell to a record low on Thursday, as investors remained wary of the risks confronting India due to stubbornly high ‌energy ⁠prices, while ⁠a hawkish tilt at the U.S. Federal Reserve compounded the pressure.

The currency fell to 95.2325, down 0.4% on the day, eclipsing its previous all-time low of 95.21 ⁠hit in ‌late-March.

The currency has declined over 5% for the ⁠year so far, adding to a similar sized drop from last year as India's external sector faced persistent headwinds ranging from trade frictions with the U.S., weakness in capital flows and ‌most recently, one of the most severe energy supply disruptions in history.


Persistent ⁠weakness in the currency can also fuel a negative feedback loop on foreign capital flows by eroding overseas investors' returns while also adding to inflationary pressures by lifting import prices.