The Indian rupee fell to a record low on Wednesday as a deadlock in U.S.-Iran peace talks
kept oil prices elevated, fuelling worries of a global inflation
surge that has lifted bond yields to multi-year highs and
weighed on equities.
Elevated energy prices and weak capital flows, further
strained by rising bond yields, have left India staring at a
steep balance of payments deficit for the ongoing fiscal year.
The rupee fell to 96.8650 per dollar on Wednesday,
eclipsing its previous all-time low of 96.6150 hit in the
previous session. The currency is down 6% since the Iran war
began in late February.
Overseas investors have pulled out over $22 billion from
local stocks and bonds over the same period, while Brent crude
prices have surged over 50%.