India’s Rupee at Fresh Low as Outflows Accelerate Amid Oil Shock

India’s rupee weakened to a fresh low, lagging behind regional peers, as foreign investors sped up sales of stocks and bonds on fears that elevated energy prices would drive up the import-heavy nation’s inflation and trade deficit.

The currency fell past the closely watched 94 per dollar mark for the first time on Friday, weakening almost 1%. That takes its decline to more than 4% since the Iran war broke out a month ago. Meanwhile, benchmark yields rose to their highest since July 2024, as the government’s decision to cut taxes on auto fuels stoked concerns of fiscal strain.