MUMBAI: The Indian rupee plunged to an all-time low of 95.63 against the US dollar in early trade on Tuesday, pressured by rising global crude oil prices and escalating geopolitical tensions involving Iran and the United States.The sharp fall in the rupee came after US President Donald Trump claimed that the ceasefire with Iran was on “massive life support,” raising fears of prolonged instability in West Asia and a possible disruption in global oil supply.At the interbank foreign exchange market, the rupee opened at 95.57 and slipped further to 95.63 against the greenback, marking its weakest-ever level. On Monday, the rupee had already crashed 79 paise to close at a record low of 95.28.According to market experts, investor sentiment remains under pressure due to fears that the ongoing Iran conflict could tighten global crude supply chains and trigger fresh volatility in financial markets.Brent crude oil prices surged 0.85 per cent to USD 105.10 per barrel in futures trade after Trump rejected Tehran’s latest peace proposal, calling it “totally unacceptable.”“Oil prices remained elevated after Trump said the ceasefire with Iran was weakening, reducing hopes of a quick resolution to the conflict,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.Meanwhile, the US dollar index strengthened by 0.19 per cent to 98.14, adding further pressure on emerging market currencies including the rupee.The domestic stock market also witnessed heavy selling pressure, with the Sensex falling over 525 points in early trade while the Nifty slipped below the 23,700 mark.Foreign Institutional Investors (FIIs) reportedly sold equities worth Rs 8,437 crore on Monday, further impacting market sentiment.Trump, while speaking at the Oval Office, said the Iran ceasefire was at its “weakest” stage and insisted that the US would continue its aggressive stance despite Tehran’s response to the peace proposal.
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