Indian Rupee Hits Record Low Amid Middle East Tensions

The Indian rupee has reached a historic low of 93.12 against the US dollar, primarily due to ongoing conflicts in the Middle East that have disrupted global supply chains. This decline reflects a nearly 2 percent depreciation since tensions began. Experts indicate that the currency is under pressure from high crude oil prices and global risk aversion. While the equity markets have rebounded, foreign institutional investors continue to sell off equities. Additionally, global oil prices have seen a decrease following potential easing of US sanctions on Iranian crude. This article delves into the implications of these developments on the Indian economy.

By Narendra Chaudhary Mar 20, 2026, 12:38 IST

Rupee Declines to New Low

Mumbai, March 20: On Friday, the Indian rupee fell to an unprecedented low of 93.12 against the US dollar, driven by ongoing disruptions in global supply chains linked to escalating conflicts in the Middle East.

The domestic currency experienced a decline of 0.55 percent, surpassing its earlier low of 92.63 recorded on Wednesday.

Since the onset of tensions in West Asia, the rupee has depreciated by nearly 2 percent.

Experts note that the USD/INR exchange rate is trading above the 92.8 mark, reflecting persistent pressure on the rupee due to high crude oil prices and global risk aversion.

A sustained increase beyond 93.00 could reinforce the upward trend, with resistance anticipated in the 93.20–93.40 range, while support levels are identified around 92.70 and between 92.50–92.40, according to Ponmudi R, CEO of Enrich Money.

In contrast, domestic equity markets showed signs of recovery, with the Sensex climbing over 900 points, approximately 1 percent, and the Nifty gaining around 300 points, or 1.35 percent.

Foreign institutional investors (FIIs) continued to be net sellers, offloading equities worth Rs 7,558.19 crore on Thursday, as per exchange data.

Meanwhile, global oil prices saw a decline after the US hinted at a potential easing of sanctions on Iranian crude, as efforts to secure shipping through the Strait of Hormuz intensified.

Brent crude futures dropped by as much as 3.39 percent, reaching an intraday low of $104.96 per barrel, while US WTI crude futures fell 3.22 percent to $92.47.

This drop in oil prices followed remarks from US Treasury Secretary Scott Bessent, who suggested that Washington might consider relaxing restrictions on Iranian oil already in transit to help stabilize global prices.

Despite this recent decrease, crude prices have surged significantly amid geopolitical tensions, with Brent crude rising nearly 40 percent from $77.74 on March 2 to $108.65 on March 19.