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Rupee Hits Record Low of 92.94 vs Dollar Amid West Asia Crisis

The Indian rupee depreciated to a fresh all-time low of 92.94 against the US dollar, pressured by elevated oil prices and foreign institutional investor outflows. The ongoing conflict in West Asia, including strikes on energy facilities in Iran and Qatar, has disrupted global supply and kept crude prices high. Analysts state the macro environment is unfavorable for the rupee as crude is likely to remain elevated. Meanwhile, the US administration is considering emergency measures like releasing strategic oil reserves to contain rising prices.

Key Points: Rupee Hits All-Time Low vs Dollar on Oil, Geopolitical Tensions

  • Rupee hits new low of 92.94
  • FIIs sell Rs 74,000 crore
  • West Asia conflict pressures oil
  • US considers emergency energy measures
  • Rupee down over 1% amid crisis
2 min read

Indian rupee hits new low of 92.94 against US dollar

Indian rupee falls to a new low of 92.94 against the US dollar amid high oil prices, foreign fund outflows, and escalating West Asia conflict.

Indian rupee hits new low of 92.94 against US dollar
"The macro backdrop remains unfavourable, with crude likely to stay elevated, keeping the rupee under pressure. - Analysts"

New Delhi, March 20

The Indian rupee reached a new low against the US dollar on Thursday, depreciating 30 paise to 92.94, as oil prices remain elevated amid the West Asia crisis.

In the meantime, foreign institutional investors (FIIs) have sold nearly Rs 74,000 crore over the last 12 sessions in the domestic stock market.

Iran has warned it would carry out more severe retaliatory strikes if the US and Israel attack its energy facilities again. On Wednesday, Israel struck Iran's South Pars offshore natural gas field in the Gulf, which it shares with Qatar.

Qatar later reported fires and extensive damage at liquefied natural gas facilities following Iranian strikes.

Earlier, the rupee on Wednesday touched a fresh low of 92.63 against the US dollar, amid a firming greenback and continued foreign fund outflows. At the interbank foreign exchange, the rupee opened at 92.42 and moved in a narrow range before weakening to its all-time low during the session.

Despite a backdrop of strong risk appetite and softer crude prices, the currency faced aggressive dollar demand from importers. Amid the ongoing West Asia conflict, the rupee has weakened by more than 1 per cent.

According to analysts, the macro backdrop remains unfavourable, with crude likely to stay elevated, keeping the rupee under pressure.

Meanwhile, the US is considering a series of emergency energy measures, including releasing more crude from its strategic reserves and easing restrictions on Iranian oil, as the White House moves to contain rising prices after fresh disruptions in global supply.​

US Treasury Secretary Scott Bessent said the administration had prepared contingency plans in advance of potential chokepoints in global oil flows, particularly around key maritime routes.​

The push comes as the White House faces pressure to respond to rising oil prices following attacks on energy infrastructure and disruptions to shipping routes.

- IANS

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Reader Comments

S
Sarah B
Living in India for 5 years now. The rupee volatility is a constant headache for expats sending money home. The FII outflow of ₹74,000 crore is a huge red flag for investor confidence. Hope the RBI has a solid plan.
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Priya S
It's all because of the conflict in West Asia. We are so dependent on imported oil, and every time there's tension there, our rupee suffers. We really need to fast-track our renewable energy plans and reduce this dependency. 🇮🇳
A
Aman W
While external factors are a problem, we must also look inward. The continuous FII selling shows a lack of confidence in our domestic markets. We need stronger, long-term economic policies, not just reactive measures.
K
Karthik V
My small manufacturing business is getting hit hard. Raw material costs are shooting up because of the weak rupee. It's a tough time for MSMEs. Government should provide some relief or easier credit for sectors like ours.
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Nisha Z
The common man always pays the price. First petrol, now everything else will get costlier. I respect the government's efforts, but I hope they have a concrete strategy beyond just managing the headlines. Jai Hind.

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