The Indian rupee weakened past the 96 per US dollar threshold on Tuesday, marking its lowest valuation since late May.
The slide was driven by a sharp escalation in crude oil prices following renewed military exchanges between the United States and Iran, which have revived acute risks to global energy supply chains.
Brent crude futures climbed sharply in the session, reflecting market anxiety over potential disruptions to Gulf shipping routes.
For India, the world’s largest crude importer, the spike in energy costs directly widens the trade deficit and intensifies pressure on the current account.
The currency’s depreciation adds to inflationary risks, as higher import costs for fuel and petrochemicals feed through to domestic prices.
This development follows a period of sustained weakness for the rupee, which had already touched 95.62 per dollar on Monday.