Rupee Hits Record Low Amidst Rising Oil Prices and Market Turbulence

The Indian rupee has reached a historic low of 94.70 against the US dollar, driven by high oil prices and market instability. This decline follows a significant drop in domestic equity markets and continued foreign institutional investor outflows. With the dollar index rising and Brent crude oil prices fluctuating, the economic landscape appears challenging. Experts weigh in on the factors contributing to this downturn and its potential impact on the Indian economy. Read on to understand the broader implications of this financial situation.

By Narendra Chaudhary Mar 27, 2026, 14:03 IST

Rupee Declines to New Low

Mumbai: The Indian rupee plummeted by 74 paise, reaching an unprecedented low of 94.70 against the US dollar during intra-day trading on Friday. This decline was influenced by soaring oil prices and a robust dollar, compounded by ongoing tensions in West Asia.

Forex traders noted that a significant drop in domestic equity markets and continued outflows from foreign institutional investors (FIIs) added to the pressure on the rupee.

Opening at 94.18 in the interbank foreign exchange market, the rupee quickly fell past the 94.50 mark before settling at 94.70 against the dollar, marking a decrease of 74 paise from the previous close.

Earlier in the week, the rupee had already dipped 20 paise, closing at a record low of 93.96 against the dollar on Wednesday. Trading in stock, forex, commodity, and bullion markets was halted on Thursday due to the Ram Navami holiday.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, commented, "The rupee fell below 94.50 as oil companies continued to buy dollars, while exporters held back their inflows and importers purchased dollars for their obligations."

The dollar index, which measures the dollar's strength against a basket of six currencies, was up by 0.08 percent at 99.67.

Brent crude oil, the global benchmark, experienced a sharp rise before slightly retreating to USD 107.4 per barrel, down 0.53 percent in futures trading.

In the domestic equity market, the Sensex dropped by 1,190.76 points, or 1.58 percent, to 74,082.69, while the Nifty fell by 352.25 points, or 1.51 percent, to 22,954.20.

Data from the exchange indicated that foreign institutional investors sold equities worth Rs 1,805.37 crore on a net basis on Wednesday.