USD vs INR: Rupee touches record low of 93.60. Can it further depreciate to 100 per dollar amid US-Iran war?

A depreciating rupee increases import costs for raw materials and components, directly impacting the profitability of sectors like auto and oil & gas. Conversely, export-oriented sectors like IT and Pharma benefit from higher rupee realizations.

• •The rupee dropped over 1% to 93.7350 per dollar.
• •This breaches its previous record low of 92.63 hit earlier in the week.
• •The depreciation is attributed to ongoing geopolitical tensions (US-Iran war mentioned in context).
• •Risk flag: Further escalation of geopolitical tensions could lead to more rupee depreciation.
• •Risk flag: RBI intervention to stabilize the rupee could impact liquidity.