FX.co ★ Indian Rupee Slides to Fresh Record Low

The Indian rupee weakened to about 92.3 per dollar, a new record low, as escalating tensions in the Middle East boosted safe-haven demand for the US currency and intensified concerns over global oil supplies. The slide came after reports that two tankers were attacked in Iraqi waters, prompting Iraq to halt operations at its oil terminals. The disruption to shipments has increased geopolitical risks and raised fresh worries over maritime security and the stability of global crude flows. In an effort to ease pressure in the energy market, the International Energy Agency announced its largest-ever coordinated release of emergency oil reserves, totaling 400 million barrels, to help rein in surging prices. Meanwhile, investors are closely monitoring today’s inflation data for clues on how the central bank may adjust monetary policy in response to rising energy costs.