The Indian rupee on Friday hit its fresh low of 94.29 against the US dollar, falling 33 paise in the opening trade, reported Indian media.The domestic currency had closed at 93.96 against the US dollar in the previous session.The rupee fell on March 27 amid worries that the energy supply crisis sparked by the West Asia war will drag on, deepening the pressure on energy-importing economies.

The local currency had hit its previous all-time low of 93.98 earlier this week. It has declined about 3.5% since the war began late last month.The threat of a protracted energy shock has kept oil prices above the $100-per-barrel mark, weighing on global equities and sending bond yields higher. 

Analysts have shaved growth forecasts for India, with some also anticipating rate hikes by the Reserve Bank of India over the next 12 months as the spillovers from the crisis threaten to lift inflation. Even if a lengthy conflict is avoided, experts see a realistic chance of the rupee breaching the 98-per-dollar level this year, with pressure primarily stemming from India’s current account balance.

Credit: Independent News Pakistan (INP)