The Indian rupee touched its weakest level against the US dollar on Monday, May 18. The week’s first trading day brought fresh pressure on the currency. During trade, the rupee fell to 96.283 against the dollar. This marked its historic all-time low against the American currency.
Previous Record Also Breaks
During trading, the rupee slipped briefly to 96.18 per US dollar. This level stood nearly 0.2 percent below its previous closing value. Moreover, the fall crossed the earlier record low of 96.1350. As a result, concerns grew around the rupee’s rapid decline.
Crude Oil Adds More Pressure
India imports nearly 85 percent of its crude oil requirement from other countries. Therefore, rising global oil prices directly increase India’s import bill. International crude prices have crossed $111 per barrel. Consequently, Indian oil importers need more dollars to make payments.
Dollar Demand Weakens INR
When oil importers rush to buy dollars, demand for the American currency rises sharply. As a result, the rupee loses value against the dollar. This pressure grows further when global crude prices climb. Therefore, expensive oil and stronger dollar demand together hit the Indian currency.
Trump Warning Fuels Risk Fear
Trump also added fresh pressure through his latest warning. He wrote on Truth Social, “The clock is ticking for Iran.” He added that Iran should move quickly toward a deal. Otherwise, he warned that it would not remain. He also said time remained extremely short.
Investors Move Toward Dollar
After this warning, global investors started avoiding risk. Therefore, they pulled money from Indian stock markets. Then, they moved funds into the US dollar. Investors consider it a safe haven during uncertainty. As a result, pressure on the rupee increased further.
What It Means For Common People
A weaker rupee can make foreign education and medical treatment costlier. People may need more money for tickets and tuition fees than before. Moreover, imported mobiles, laptops, laptop parts, and automobile components can become expensive in India.
Daily Costs May Rise Next
A stronger dollar can also raise transportation costs within the country. Consequently, daily-use items may become more expensive. Therefore, the rupee’s fall can affect households through education, healthcare, gadgets, vehicles, travel, and everyday expenses.
