The Indian rupee has reached a troubling milestone, slipping to an unprecedented low of 92.35 against the US dollar. This decline of 0.3% on Thursday marks a new record, surpassing its previous low of 92.34 set just earlier this week, according to reports from Reuters.

In a stark comparison, the rupee closed at 92.04 against the dollar on Wednesday and started the week at 91.8. Such fluctuations signal growing concerns among economists and investors regarding the stability of the Indian currency, particularly in light of rising global oil prices.

The Brent crude oil price has surged to $100 per barrel as geopolitical tensions in West Asia escalate. Iran’s recent attacks on oil and transport facilities have put additional pressure, and Tehran has ominously suggested that prices could soar to as much as $200 per barrel. This spike in oil prices has been pronounced since the conflict escalated following a joint operation by Israel and the United States aimed at targeting Iran’s capabilities.

To put things in perspective, before the conflict began at the end of February, the Brent crude was trading around $72 per barrel. Now, global oil prices have jumped by approximately 50%, raising fears about potential disruptions in vital shipping routes, particularly through the Strait of Hormuz, where 20% of the world’s petroleum passes.

This economic turmoil caused by external factors raises a lot of questions about the resilience of the Indian economy. As the rupee continues to weaken, it will be interesting to see how the government and the Reserve Bank of India respond to stabilize the currency and manage inflation amid these challenging times.