The world economy is in crisis due to the war. The rupee is in a state of crisis. Import bills are increasing concerns. The rupee is at its lowest level against the dollar at 96.53. Earlier, the rupee closed at 96.29 on Monday. The rupee has been falling steadily for the past few days. There has been pressure on the rupee since the beginning of 2026. The rupee fell to 90 for the first time in December 2025. In such a situation, inflationary pressure is expected to increase.
Experts have said that if the war does not end and crude oil prices continue to rise like this, the rupee may touch 100. The US-Iran war is responsible for the weakening of the currency. The US-Iran war has created a crisis in West Asia. This war is said to be a major reason for the decline in the currency. There is fear in the global market due to war-related uncertainty. Investors are withdrawing investment money from emerging markets.
The price of crude oil in the international market is now close to $110 per barrel. India meets 85% of its requirements by importing oil. Due to the increase in crude oil in the international market, the pressure on India due to import bills has increased. On the other hand, the demand for the dollar has also increased. Oil supplies have been disrupted after Iran imposed restrictions on the Strait of Hormuz, which plays a key role in the supply of oil from the Gulf countries. More than 20% of the world’s oil and gas comes through this route.
Foreign portfolio investors are constantly withdrawing investment funds from the Indian market due to the uncertainty in the global market. As a result, the demand for the dollar has increased and this is weakening the rupee. The demand for the US dollar as a safe investment has increased. The dollar index has strengthened. Similarly, investors are rushing to invest in dollars as US bond yields improve.
The Middle East war is being called the biggest energy crisis of the decade. It has had a direct impact on India. The country’s import bill has increased. The supply of LPG, plastics and other petrochemical products has been affected. The prices of petrol-diesel and imported goods have increased. This has played a major role in increasing retail inflation. Foreign travel and education have to be paid more. The prices of mobiles, laptops and imported goods are expected to increase further. On the other hand, sending more money to the country in dollars will be cheaper. Medical tourism and travel will be cheaper for tourists coming to India.
