Indian Rupee Hits Lowest on Record

2026-03-04 03:39 By Erika Ordonez 1 min. read

The Indian rupee slipped to around 92 per dollar, marking its lowest level on record, as soaring global oil prices and a strong US dollar weighed on the currency.

Brent crude climbed above $85 amid US-Israeli strikes on Iran, raising fears of supply disruptions through the Strait of Hormuz, a key route for India’s oil and LNG imports.

Higher crude costs threaten to widen India’s current account deficit and boost importer dollar demand.

At the same time, heightened risk aversion pushed investors to withdraw more than $350 million from Indian equities on Monday, while the dollar strengthened further as safe-haven flows intensified.

Meanwhile, the RBI stepped into both spot and forward markets to dampen excessive volatility and stabilize the rupee.

Looking ahead, India’s efforts to diversify energy supplies, including renewed LNG ties with Canada, may ease structural pressure over time.



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