India, March 27 -- The Indian Rupee (INR) has entered a period of unprecedented volatility against the U.S. Dollar (USD), reaching record lows this March. Rising tensions between the United States and Iran are causing disturbances in global energy and currency markets.

In a dramatic shift, the exchange rate exceeded the 94.00 mark for the first time ever. This change is indicative of risk aversion by international investors. This sentiment can be attributed to U.S.-Israeli military operations against Iranian targets, and threats by Tehran to close the Strait of Hormuz, a vital route to almost 20% of global oil supply.

The Oil Shock: Why the Rupee is Sinking The currency of India is especially exposed to geopolitical unrest because of it...