Indian Rupee Hovers Near Record Low

2026-03-16 05:23 By Erika Ordonez 1 min. read

The Indian rupee hovered around 92.45 per dollar, trading near record lows, pressured by elevated crude prices and sustained foreign equity outflows.

Oil prices remain high after surging since the Iran conflict began in late February, as military disruptions and risks to major oil shipping routes stoke global energy concerns.

Persistently high energy costs have increased dollar demand from importers, widening India’s trade deficit and creating a material terms-of-trade shock.

Investor sentiment also stayed fragile, as overseas portfolio investors have withdrawn over $8 billion from Indian equities since the conflict began, coinciding with a more than 6% drop in the Nifty 50 so far this month, reducing foreign currency inflows and amplifying depreciation pressures amid firm US dollar strength.

The Reserve Bank of India has intervened in FX markets to stabilize the currency near 92.50, helping limit further declines.

Focus now shifts to the Federal Reserve, with rates likely steady.



News Stream
Rupee Anchored by RBI, Inflows
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Rupee Steadies as RBI, Weak Dollar Offset Oil
The Indian rupee hovered near 95.68 per dollar, steadying after recent gains as ongoing RBI intervention and a broadly weaker US dollar cushioned pressure from rising crude prices and persistent importer hedging demand. Brent crude hovered just below $94 a barrel after rising more than 2% in the previous session and has climbed nearly 12% over the past two weeks, as uncertainty over the US-Israeli war with Iran kept supply concerns elevated. Meanwhile, the dollar remained under pressure and was on track for a weekly loss, after the US Treasury doubled buybacks of longer-maturity securities for the next quarter, although the selloff in longer-dated Treasuries resumed on Thursday, cutting short the relief rally. Traders expect the RBI to continue intervening, limiting intraday volatility and keeping the rupee in a narrow range, with risks still tilted to the downside.
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Rupee Falls to Three-Week Low on Oil
The Indian rupee hovered around 95.74 per dollar, extending losses for a third consecutive session to a three-week low as higher oil prices, elevated US Treasury yields, and a risk-off mood weighed on the currency. Brent crude neared $92 a barrel, rising for a fourth straight day amid uncertainty over the Strait of Hormuz, while the 30-year US Treasury yield climbed to its highest level since 2007, further dampening risk appetite. The rupee also remained under pressure after the RBI brought forward by a month the deadline for its discounted foreign-currency swap facility for non-resident Indian deposits, souring near-term sentiment. Meanwhile, strong underlying dollar demand continued to weigh on the currency, although daily RBI intervention through dollar sales helped limit the decline and cap volatility.
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