Rupee slumped 69 paise to an all-time low of 92.18 against the US dollar in early trade on Wednesday, as a sharp spike in crude oil prices amid geopolitical tensions following the escalation of the US-Iran conflict weighed on investor sentiment.

Forex traders said the domestic currency is under severe pressure due to a sharp spike in crude oil prices, with Brent Crude crossing the USD 82 per barrel level in futures trade in the wake of the Iran crisis, which dented investor sentiments.

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At the interbank foreign exchange market, the rupee opened at 92.05, then fell to an early low of 92.18 against the American currency, registering a fall of 69 paise from its previous close.

On Monday, the rupee had settled at 91.49 against the US dollar.

The forex Market was closed on Tuesday on account of Holi.

Traders said the USD/INR pair remains under pressure as investors are moving toward safe-haven assets. Moreover, persistent foreign capital outflow from the equities, and fears grow that expensive imports will hurt the trade balance.

The rupee has now depreciated by more than 7 per cent in the current financial year, weighed down by persistent foreign fund outflows, a strengthening US dollar and elevated global crude prices.

Forex dealers attributed the sharp fall to a broader shift towards safe-haven assets such as the dollar and US Treasuries amid heightened geopolitical uncertainty. Rising oil prices have further worsened sentiment, given India’s heavy reliance on crude imports, which increases the country’s import bill and widens the current account deficit.