The Indian rupee slid to a record low of Rs 92.94 against the US dollar, pressured by a mix of global and domestic factors including a strengthening dollar, rising crude oil prices, and sustained foreign fund outflows. Since the start of the Iran-US war, rupee has been weakening against US dollar.
The currency weakened to 93.12 against the US dollar, breaching its previous record low of 92.63 recorded a day earlier.
Crude oil prices surged to nearly $120 per barrel on Thursday after attacks on key energy infrastructure in the Gulf, before easing slightly on Friday.
In response, major European nations and Japan have expressed willingness to support efforts to ensure safe passage of vessels through the Strait of Hormuz, while the United States has outlined measures to boost oil supply.
Pressure on the rupee is expected to persist in the near term, as rising oil prices have triggered significant foreign outflows, with investors pulling over $8 billion from Indian equities so far in March — marking the highest monthly outflow since January 2025.
