Indian Rupee Hovers at 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.

Brent crude climbed above $106 per barrel, extending gains of nearly 40% since the Iran conflict began February 28, as military disruptions and risks to major oil shipping routes have intensified concerns over global energy supply.

Persistently high oil prices are forcing importers to purchase more dollars, widening India’s trade deficit and creating a material terms-of-trade shock.

Investor sentiment remains fragile, as overseas portfolio investors have withdrawn over $5.5 billion from Indian equities in March, coinciding with an 8% decline in the Nifty 50 so far this month, reducing foreign currency inflows and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 and prevent excessive volatility.



News Stream
Indian Rupee Hovers at Record Low
The Indian rupee hovered around 92.45 per dollar, trading near record lows, pressured by elevated crude prices and sustained foreign equity outflows. Brent crude climbed above $106 per barrel, extending gains of nearly 40% since the Iran conflict began February 28, as military disruptions and risks to major oil shipping routes have intensified concerns over global energy supply. Persistently high oil prices are forcing importers to purchase more dollars, widening India’s trade deficit and creating a material terms-of-trade shock. Investor sentiment remains fragile, as overseas portfolio investors have withdrawn over $5.5 billion from Indian equities in March, coinciding with an 8% decline in the Nifty 50 so far this month, reducing foreign currency inflows and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 and prevent excessive volatility.
2026-03-16
Indian Rupee Extends Losses
The Indian rupee fell to around 92.45 per dollar, extending losses for another session after hitting a fresh record low, as escalating tensions in the Middle East boosted demand for the US dollar and stoked concerns over oil supply. Brent crude hovered near $100 a barrel after a volatile week, while West Texas Intermediate stayed near $95. The surge followed Mojtaba Khamenei’s first comments since succeeding his father, pledging to keep the Strait of Hormuz closed, a key route for global crude and natural gas. In India, investors assessed the latest inflation data, showing consumer prices rising 3.21% year-on-year in February 2026, up from 2.74% in January, marking the fastest pace in 11 months. Rising inflation and crude prices from the Strait of Hormuz may prompt the Reserve Bank of India to tighten or maintain a cautious interest rate stance to curb inflation while supporting growth.
2026-03-12
Rupee Recovers After Hitting Record Low
The Indian rupee held around 91.9 per dollar, recovering modestly from a record low in the previous session as the Reserve Bank of India stepped up measures to stabilize financial markets. The RBI has remained active in foreign-exchange markets, with estimates suggesting it may have sold $18 billion–$20 billion last week alone. The central bank has also used buy-sell swaps to replenish liquidity and support market stability. However, the recovery faced headwinds from fluctuating crude prices and persistent foreign outflows from Indian equities. Although brent crude has eased to around $88 per barrel from earlier peaks near $120 during the height of supply disruption fears. Adding to the pressure, foreign investors have continued trimming their exposure to Indian stocks, withdrawing nearly $4 billion so far this month.
2026-03-10