NEW DELHI, March 23 (Xinhua) -- Amid increasing global uncertainty, the Indian rupee Monday recorded a lifetime low as it hit 93.96 against the U.S. dollar.
Experts attribute the move to the sharp surge in crude oil prices amid ongoing Middle East tensions, which have significantly increased India's import costs, driving higher demand for dollars.
The rupee's depreciation hints at growing pressure on India's external accounts, driven by rising energy costs and the ongoing grim geopolitical situation.
Since the conflict erupted in late February, the rupee has lost nearly 3 percent of its value.
"Foreign portfolio investors have been selling Indian assets and moving money out. When they exit, they convert rupees into dollars, increasing demand for the U.S. currency and putting pressure on the rupee," a market analyst said.
Traders are watching the 94.00 per dollar mark closely, a level widely regarded as a key psychological barrier in currency markets.
"Easing in geopolitical tensions could lead to a short-term recovery of 1.00-1.50 rupees, while continued escalation may keep the currency under sustained pressure," the analyst further said. ■
