The Indian rupee plunged to a record low of 94.83 against the US dollar on March 27, 2026, capping a sharp depreciation driven by surging oil prices and foreign investor outflows.
The currency first breached the 94 mark on that date, following an intraday low of 93.81 on March 20. By March 30, it traded around 94.86, with intraday swings between 92.97 and 95.07 before settling near 93.94-94.86. This marked the rupee’s weakest level on record, extending a slide from 92.92 earlier in the month.
Geopolitical tensions, particularly the US-Iran conflict since late February, have pushed oil above $100 per barrel. Higher import costs have widened India’s current account deficit, while foreign institutional investors pulled over $8 billion from equities, increasing dollar demand. A strong US dollar has compounded the pressure.
The Reserve Bank of India has responded aggressively, selling more than $15 billion in March to stabilize the rupee. Interventions included heavy pre-market dollar sales, briefly lifting the currency from levels like 92.30 to 91.57 earlier in the month. Despite these efforts, global flows have limited lasting gains.
The depreciation raises import expenses for oil, electronics, and overseas education, fueling inflation concerns. Exporters benefit from better dollar conversions, and companies are increasing hedging. Analysts note potential tests of 94.5-94.7 if the pair holds above 94.26, signaling near-term weakness.
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