By Admin 
Rupee vs Dollar: The Indian rupee has come under pressure amid increasing military tension in West Asia. Crude oil prices surged following news of joint military action by the United States and Israel on Iran, causing the Indian currency to register its biggest fall in the last one month. India imports about 85 percent of its energy needs and a large part of it comes from West Asia, so the rise in oil prices has a direct impact on the rupee and inflation fears.
Why did the rupee panic?
On Monday, the rupee fell by 21 paise to 91.29 per dollar in the Interbank Forex Market. It opened at 91.23 and slipped further in early trade. Earlier on Friday, the rupee had fallen by 17 paise and closed at 91.08 per dollar. According to foreign exchange traders, weakness in the domestic stock market and heavy selling by foreign investors also increased the pressure on the rupee.
According to stock market data, on Friday, foreign institutional investors (FIIs) sold shares worth Rs 7,536.36 crore. Global oil benchmark Brent Crude rose by about 3.91 percent to $ 76.78 per barrel in futures trade. The dollar index, which shows the strength of the US dollar against six major currencies, rose 0.22 percent to 97.78.
What are market experts saying?
Experts’ Opinion Analysts say that in the recent attacks, American and Israeli forces targeted Iran’s ballistic missile bases and naval resources. Regional tension has increased further after the news of the death of Iran’s supreme leader Ali Khamenei. In response, Iran has started missile attacks on Israel and other targets in the region, which has deepened geopolitical uncertainty.
According to experts, due to increase in crude oil prices, India’s import bill may increase and there is a risk of the current account deficit also increasing. There is an atmosphere of nervousness in the global markets due to uncertainty regarding energy supply, the effect of which is clearly visible on the currencies of emerging markets, especially the rupee.
Also read: Iran-Israel war spoiled the market environment, Sensex fell by 937 points; Nifty below 24,911