The rupee hit a record low of 95.22 against the dollar on Monday, following a previous close of 94.85 against the dollar, fueled by the Iran war and rising crude oil prices.

Rupee at historic low

Iran War Negatively Impacts the Rupee: The rupee gave up early gains during trading on Monday and crossed the 95 mark to settle at 95.22 against the US dollar. The domestic currency is under pressure due to rising crude oil prices, ongoing geopolitical tensions, and a strong dollar environment.

The rupee, though opening higher, later gave up its early gains. The rupee opened at 93.62 per dollar in the interbank foreign exchange market and then fell to 93.57, a gain of 128 paise from its previous close.

Iran war shakes global markets.

However, this gain could not be sustained, and the rupee fell to an all-time low of 95.22 against the US dollar during the day's trading. The ongoing war in Iran and rising tensions in the Middle East have shaken global markets, which are directly affecting the Indian currency. Earlier on Friday, the rupee had closed at a record low of 94.85 per dollar, falling by a massive 89 paise.

What will be the impact on the common man?

The weakening rupee means that everything imported from abroad will become more expensive. This means that India will now have to pay more dollars for crude oil, which could lead to higher prices for petrol, diesel, and cooking gas (LPG) in the coming days.

There will be a jump in the prices of everyday items!

Furthermore, the prices of mobile phones, laptops, and other gadgets whose parts are imported may increase. Furthermore, students studying abroad or those planning to travel abroad will now have to spend more rupees to buy dollars. Freight transportation will also become more expensive, which could lead to a rise in the prices of food and other daily necessities.