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.



News Stream
Indian Rupee Falls to Record Low
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.
2026-03-30
Rupee Rebounds as Banks Cut Dollar Bets
The Indian rupee strengthened to around 93.9 per dollar, rebounding sharply after hitting record lows as authorities stepped in to contain pressure on the currency. The gains followed the Reserve Bank of India’s announcement of new limits on banks’ foreign-exchange exposure, capping onshore open positions at $100 million per day, effective April 10. The measure compels lenders to scale back large positions and curbs their ability to build aggressive one-sided bets against the rupee. The intervention comes as the rupee has declined more than 4% over the past month, falling to around 94.82 per dollar. Earlier interventions to stabilize the currency have already contributed to a drop of over $30 billion in foreign-exchange reserves in the first three weeks of March, limiting the central bank’s flexibility for further direct action.
2026-03-30
Indian Rupee Slips to Record Low
The Indian rupee fell to around 94.4 per dollar, hitting a record low, as mixed signals on Middle East diplomacy left investors uncertain. A temporary easing of risks came with Washington extending its pause on strikes against energy infrastructure by 10 days until early April, slightly stabilizing oil markets, though markets remain wary amid ongoing tensions. Markets also factored in expectations that the Reserve Bank of India would keep its key repo rate steady at 5.25% on April 8 and maintain this stance at least until mid-2027. Losses were partially limited after Iran allowed India and several other “friendly nations” to continue using the strategic Strait of Hormuz for commercial shipping, easing concerns over potential LPG and petrol supply disruptions.
2026-03-27