New Delhi, Mar 21 (KNN) The Indian rupee fell to a record low, breaching the 93-per-dollar mark for the first time, amid escalating geopolitical tensions in West Asia and rising crude oil prices that have intensified pressure on the currency.
The rupee touched an all-time low of 93.77 before closing at 93.72 against the US dollar on Friday, marking a sharp fall of over 100 paise from Tuesday’s close of 92.64, its steepest intraday decline in more than four years, reported The Indian Express.
The depreciation follows heightened conflict in West Asia, particularly after attacks on key energy infrastructure, including the South Pars gas field and facilities in Ras Laffan Industrial City. These developments have raised concerns over global energy supplies and pushed crude oil prices significantly higher.
Economists warn that sustained high oil prices could weaken the rupee further. If crude remains around or above USD 100 per barrel, the currency may slide towards 94-95 per dollar, reflecting increased pressure on India’s trade deficit and inflation outlook.
The situation has been compounded by foreign portfolio investor (FPI) outflows, with nearly USD 11.3 billion withdrawn from Indian equity and debt markets so far in March, the highest since October 2024. This risk-off sentiment has added to downward pressure on emerging market currencies, including the rupee.
The Reserve Bank of India has stepped up its market interventions to curb volatility. After relatively limited intervention earlier in FY26, the central bank significantly increased dollar sales in late 2025 and is likely to have continued doing so in recent months. India’s foreign exchange reserves have declined sharply, falling to around USD 709.8 billion as of March 13.
The rupee has now depreciated over 4 percent against the dollar in 2026 so far, and nearly 3 percent since the onset of the latest phase of conflict on February 28.
Rising crude prices have further complicated the macroeconomic outlook. India’s crude basket, which averaged below USD 70 per barrel earlier in the fiscal year, has surged to over USD 117 per barrel in March, according to official data.
The combined impact of currency depreciation and elevated oil prices is expected to pose challenges for monetary policy. A weaker rupee could push up inflation, even as it provides limited support to exports in the short term.
With global uncertainty persisting, analysts expect the central bank to adopt a cautious stance at the upcoming Monetary Policy Committee meeting in April, with the policy repo rate likely to remain unchanged.
(KNN Bureau)
