The rupee continued its decline on Monday and opened at an all-time low of 96.20 against the US dollar, 0.2% lower than its previous close. This comes as the ongoing conflict in the Middle East continues to dampen sentiment and destabilize markets. The decline brings the currency down 5.5% since the crisis began. Last week, the currency breached the 96-rupee mark for the first time, hitting an intraday low of 96.14 before closing at 95.97 on Friday. A major reason behind the fall of rupee is rising oil prices. Brent crude reached $111 per barrel on Monday after reports of an attack on a nuclear power plant in the United Arab Emirates. Along with this, US President Donald Trump may also consider possible military options against Iran during the upcoming discussion. The rupee’s record decline has raised concerns about India’s macroeconomic outlook, particularly as the economy becomes more exposed to external shocks due to a larger-than-expected trade deficit and lower capital flows. Ponmudi R, CEO, Enrich Money, said, “Ongoing geopolitical uncertainty and energy-driven macro pressure continued to lead to strong dollar demand globally, pushing the rupee above Rs 96.” He said the currency’s weakness has heightened investor concerns over India’s rising import bill, worsening inflation trajectory and a possible slowdown in economic growth at a time when the macroeconomic environment is already under severe stress.“ Dalal Street reflected the weak sentiments, with both benchmarks slipping more than 1%. Nifty50 opened 247 points or 1.04% lower at 23,396.45, while BSE Sensex was down 808 points or 1.07% at 74,430.35. Authorities have already initiated measures aimed at slowing the rupee’s decline. These include restrictions on imports of precious metals, with most silver imports being curbed over the weekend, soon after import duties on silver and gold were removed. The Reserve Bank of India has also stepped into the money market and tightened the rules on net open positions of banks. “In the near term, rising balance of payments pressures will need to be absorbed across a number of tools: rupee depreciation, FX interventions, stimulating capital flows and compressing the current account,” JPMorgan economists said in a note cited by Reuters. Currency traders expect depreciation pressure to persist throughout the week, with RBI intervention likely to determine whether the rupee’s losses will be gradual or accelerate.