The Indian rupee sank to a fresh record low against the US dollar, fueled by soaring energy import costs during an ongoing energy crisis and accelerating capital outflows. This has intensified pressure on the Reserve Bank of India (RBI) to potentially hike interest rates, ending a pause in monetary tightening.
Continuing its multi-month slide that saw record lows like 93.73 in March and breaches above 94 amid West Asian tensions, the rupee weakened further due to elevated energy import bills, as reported by The Economic Times. Indian stocks and the currency tumbled on Thursday, led by declines in metals and public sector banks, amid global uncertainty, surging oil prices, and rumors of potential military action against Iran. The RBI intervened to support the rupee, though specific details were not disclosed. Despite the pressures, Indian markets posted their best April performance in 28 months before closing on Friday for Maharashtra Day.
