Rupee Breaches ₹91/$ Mark as US-Israel-Iran Conflict Sparks Oil Rally

The Indian rupee slid past the ₹91-per-dollar mark on Monday, touching its weakest level in nearly a month as escalating tensions in the Middle East rattled global markets and triggered a flight to safety.

Currency traders warned that the rupee could weaken further toward ₹91.50 if geopolitical risks intensify, particularly amid the deepening conflict involving the United States, Israel and Iran. Rising crude oil prices, firming dollar demand and broad risk aversion combined to pressure emerging-market currencies, with the rupee among the hardest hit.

Higher oil prices pose a particular challenge for India, one of the world’s largest crude importers, as they widen the trade deficit and stoke inflation concerns. At the same time, investors flocked to the US dollar and other safe-haven assets, further weighing on the domestic currency.

Market participants expect volatility to remain elevated through the week if tensions persist, with traders closely monitoring crude price movements and global risk sentiment.

Safe-haven demand also lifted precious metals sharply.

On the Multi Commodity Exchange (MCX), April gold futures jumped 3.16 per cent to ₹1,67,221 per 10 grams. Silver futures for May delivery surged 3.43 per cent to ₹2,92,347 per kilogram as investors sought protection against geopolitical uncertainty and market turbulence.

Analysts said sustained safe-haven flows into gold and the dollar could keep pressure on risk assets, including emerging-market currencies like the rupee, in the near term.