Rupee weakened sharply on monday, falling to an all-time low of ₹93.9 against the US dollar. The decline comes amid growing global uncertainty, particularly due to escalating tensions in the Middle East and a surge in crude oil prices.
The ongoing geopolitical situation has raised concerns about disruptions in oil supply, pushing crude prices higher. As India relies heavily on oil imports, rising prices increase demand for dollars, putting additional pressure on the rupee.
At the same time, a stronger US dollar has made emerging market currencies, including the rupee, less attractive to investors. Foreign investors have been pulling money out of Indian markets, adding to the downward pressure on the currency. Weak sentiment in equity markets has further reflected this cautious approach among investors.
While the currency market remained under stress, precious metals showed a different trend. Gold prices edged lower, slipping slightly in domestic markets, while silver prices also declined during the day. The fall in gold and silver prices is mainly linked to the strengthening dollar, which typically reduces the appeal of these safe-haven assets.
Market experts note that although geopolitical tensions usually support gold prices, the current rise in the dollar and bond yields has limited any gains, leading to a mild correction instead.