Rupee Hits Record Low Amid Global Tensions and Oil Price Surge

The Indian rupee has reached a historic low of 92.35 against the US dollar, driven by soaring crude oil prices and geopolitical tensions in the Middle East. This decline is compounded by foreign fund withdrawals and a weak domestic equity market. Analysts predict continued pressure on the rupee, although potential central bank interventions may provide some support. As global markets react to these developments, the implications for the Indian economy are significant. Read on to explore the factors contributing to this financial situation and what it means for investors and consumers alike.

By Narendra Chaudhary Mar 9, 2026, 16:28 IST

Rupee Declines to Historic Low

Mumbai: The Indian rupee plummeted to an unprecedented closing value of 92.35 against the US dollar on Monday, marking a decline of 53 paise during the trading session. This drop was influenced by a significant rise in global crude oil prices and a strengthening dollar amid escalating tensions in the Middle East.

Forex traders noted that the rupee faced additional pressure from the withdrawal of foreign investments, coinciding with heavy selling in the domestic stock markets.

During interbank trading, the rupee began at 92.22, briefly improving to 92.15, but continued to lose value throughout the day, ultimately closing at its record low of 92.35, down 53 paise from the previous day's close.

On Friday, the rupee had already depreciated by 18 paise, finishing at 91.82 against the dollar.

Anuj Choudhary, a Research Analyst at Mirae Asset ShareKhan, commented, "The rupee opened significantly lower, reaching a new low of 92.35 due to weak global market conditions and a sharp increase in crude oil prices, which surged approximately 25 percent during the Asian trading session. The strong dollar and outflows from foreign institutional investors also contributed to the rupee's decline."

Choudhary added that the rupee is likely to continue facing downward pressure due to negative global market sentiment and a robust dollar, particularly in light of geopolitical issues in the Middle East. However, he mentioned that any intervention from the central bank could provide support for the rupee at lower levels, predicting that the USD-INR spot price may fluctuate between 92 and 92.80.

Brent crude oil, a global benchmark, was trading up by 15.18 percent at USD 106.8 per barrel as tensions escalated between the US, Israel, and Iran.

The dollar index, which measures the dollar's strength against a basket of six currencies, was up by 0.35 percent at 99.33.

In the domestic stock market, the Sensex fell by 1,352.74 points, closing at 77,566.16, while the Nifty dropped 422.40 points to settle at 24,028.05.

Data from the exchange indicated that foreign institutional investors sold equities worth Rs 6,030.38 crore on a net basis on Friday.

In a separate development, India's foreign exchange reserves increased by USD 4.885 billion, reaching a record high of USD 728.494 billion for the week ending February 27, as reported by the Reserve Bank.