Rupee Hits Record Low, Markets Lose Rs 7 Lakh Crore
The Indian rupee fell to a record low of 94.29 per US dollar on Friday, causing massive losses in the stock market. Within an hour of trading, investors saw nearly Rs 7 lakh crore wiped off, as both the currency and equities faced heavy pressure.
The fall started at 9:15 am when the rupee opened weaker at 94.16, following Wednesday’s close of 93.98. At the same time, the Sensex dropped over 1,000 points by 10:15 am.
The reason lies outside India. The ongoing Iran conflict has disrupted key oil routes, sending crude prices higher. India imports over 80% of its oil, so costlier crude raises concerns about the country’s import bill, inflation, and fiscal stability.
Rising oil costs increase the demand for US dollars in India. Meanwhile, global investors are seeking the safety of the US dollar amid geopolitical uncertainty. This double pressure is pushing the rupee down.
The weakening currency is also affecting equities. A weaker rupee makes Indian stocks less attractive to foreign investors, leading to faster selling. The Sensex market capitalisation fell from Rs 4,31,01,834.74 crore on Wednesday to Rs 4,24,15,304.99 crore by Friday morning.
In short, the same global event—the Iran conflict—is driving oil prices up, strengthening the dollar, weakening the rupee, and triggering a sell-off in Indian equities.
Analysts say both the currency and stock markets are reflecting global risk in real time. Investors remain cautious as the Iran war continues, and energy costs are expected to keep pressure on the rupee and Indian markets.
