Indian Rupee Slips to Record Low

2026-03-19 02:31 By Erika Ordonez 1 min. read

The Indian rupee weakened past 93 per dollar, marking its lowest level on record, pressured by surging oil prices and heightened geopolitical tensions in the Middle East.

Brent crude and India’s crude basket climbed above $105–$111 per barrel following attacks on key energy infrastructure and threats to supply routes through the Strait of Hormuz.

Higher oil import costs fueled concerns over inflation and a widening current account deficit, with India importing over 80% of its energy needs.

Importers stepped up dollar purchases, while foreign investors have pulled nearly $8 billion from Indian equities so far in March, intensifying capital outflows.

Meanwhile, the Reserve Bank of India has intervened heavily, with net forward dollar sales approaching $100 billion across onshore and offshore markets, using forward contracts and swaps.

However, ongoing pressure from thin liquidity and persistent external risks still pushed the rupee past the 92.50 level.



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