Indian Rupee Hits 4-week Low

The Indian rupee hovered just below 94 per dollar, steadying near record low levels, as oil prices pulled back on reports of a US ceasefire proposal to Iran. The move lifted risk sentiment around the Middle East conflict and tempered safe-haven demand for the dollar. However, gains remained limited as persistent foreign portfolio outflows and upcoming non-deliverable forward (NDF) and fiscal-year-end maturities continued to generate strong dollar demand. India’s reliance on oil imports, along with lingering concerns over damaged Gulf energy infrastructure, kept underlying pressures elevated, while Reserve Bank of India intervention after earlier support of $16–18 billion left the rupee more exposed to external shocks. Investors continue to watch crude price swings, foreign flows, and geopolitical developments. The market is closed today for Ram Navami and is set to reopen tomorrow, Friday.

The Indian rupee weakened past 93.5 per dollar, extending its decline after touching historic lows, as sustained outflows continued to pressure the currency. Foreign portfolio investors accelerated their retreat, pulling more than $11 billion from Indian equities and debt markets in March, the sharpest monthly outflow since October 2024. Some of that strain eased after US President Donald Trump signaled a temporary halt to potential strikes on Iran’s energy infrastructure, opening space for brief diplomatic engagement and easing immediate fears of escalation. Oil markets responded by stabilizing, with Brent crude oil holding near $102 per barrel, although prices remain elevated following a strong rally driven by ongoing supply concerns. Market participants are now awaiting preliminary purchasing managers’ index data for further insight into economic activity.

USDINR increased to an all-time high of 93.59. Over the past 4 weeks, US Dollar Indian Rupee gained 2.75%, and in the last 12 months, it increased 8.75%.