The Indian rupee fell to its lowest level in history on Friday, trading at 92.39 per US dollar, surpassing the previous record of 92.3575. The decline followed growing concerns over energy supply disruptions and surging oil prices triggered by the ongoing war centered on Iran. Analysts cautioned that if the Middle East conflict continues, inflationary pressures in India could intensify further.

According to Reuters, the rupee has lost more than one percent of its value since the start of the Iran conflict. However, the Reserve Bank of India’s market interventions have helped keep the currency relatively stable compared with other emerging economies. Official data showed India’s consumer price index inflation rose to 3.21 percent in February, up from a revised 2.74 percent in January, marking a ten‑month high.

Food inflation also increased to 3.47 percent in February from 2.13 percent the previous month. The revised CPI now uses 2024 as the base year and expands the basket of goods from 299 to 358 items.