The Indian rupee hit a record low against the US dollar on Friday, driven by worries over rising oil prices and the continued outflow of foreign funds from the country’s stock markets.
The rupee weakened to 83.99 per dollar, slightly surpassing its previous all-time low of 83.9850 recorded on September 12, and down from the 83.9675 level seen in the prior trading session.
The rupee had rebounded to around 83.50 just over two weeks ago.
"Yesterday, crude prices traded higher by more than 3 percent on concerns about potential supply disruptions in the Middle East, with Israel planning to strike oil-producer Iran, and on spikes in fuel demand as a major storm barreled into Florida. The world's largest oil producer and consumer has been hit by a second major storm, Hurricane Milton, which made landfall on Florida's west coast, spawning tornadoes and threatening surges of seawater," said Saish Sandeep Sawant Dessai, Analyst, Angel One.
"The storm has already driven up demand for gasoline in the state, with about a quarter of fuel stations selling out of supplies, which has helped support crude prices. Crude prices are likely to trade higher on concerns about potential supply disruptions in the Middle East, with Israel planning to strike oilproducer Iran, and on spikes in fuel demand as a major storm barreled into Florida," he added.
