Muscat: The Indian rupee fell to an all-time low on Monday as high energy prices due to the ongoing conflict in Iran sent global bond yields soaring, denting risk appetite and deepening economic headwinds confronting the world's third-largest crude importer.
The rupee fell to around 96.33 per dollar, eclipsing its previous all-time low of 96.1350. The rupee, which is Asia's worst-performing currency of 2026, has fallen to record lows for five straight sessions.
AGAINST OMANI RIAL
While the Exchange Houses in Oman are offering above RO249 against one Omani Rial after taking into account the higher volatility, though the rupee has the 250-mark against the Omani rial according to market watchers.
R. Madhusoodanan, a Muscat-based financial expert, said that the reason for the fall is mainly due to the continued West Asia crisis, the supply chain disruptions, and higher shipping costs.
The geopolitical tensions have driven up the oil prices. Currently, Brent is trading above $111.
Coupled with this, the strong dollar demand in the international market and the foreign outflows from the Indian stock market have added pressure to the Indian Rupee.
Though RBI has a comfortable Foreign Exchange Reserve of close to $697 billion, the intervention does not seem effective, he added.
Indian merchandise trade deficit widened to $28.38 billion due to the higher oil import bills.
The weakness in the INR is likely to continue till a solution is arrived at for the middle east geo political tensions, he said.
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