Indian Rupee Falls to Record Low

2026-03-30 11:33 By Andre Joaquim 1 min. read

The Indian rupee weakened to 95 per US dollar at the end of the fiscal year, a new record low, to pare the momentary rebound from RBI intervention.

The Reserve Bank of India capped positions on foreign exchange to reprieve the selloff for the currency before local markets repivoted to favor hard foreign exchange.

The rupee lost nearly 10% in the financial year, including a 3.6% plunge in March after the outbreak of war in the Middle East raised macroeconomic headwinds for the currency.

Geopolitical instability favors the dollar due to global markets opting for save haven assets, and the halt of business activity in Gulf states pressured the outlook for remittances from Indian workers that serve as a source for foreign exchange inflows to the country.

Additionally, the consequent surge in energy prices magnified rupee selling as India imports a large majority of its crude oil and product to fuel manufacturing and transportation.



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