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Rupee Plunges Past 95 vs Dollar as Oil Surges, RBI Tightens Curbs

The Indian rupee plummeted past the 95 mark against the US dollar for the first time, hitting a record low of 95.2. The decline comes despite the Reserve Bank of India imposing new curbs, reducing the net open position limit for banks to $100 million to curb volatility. Soaring global crude oil prices, driven by geopolitical tensions, have intensified pressure on the currency and domestic markets. The equity markets mirrored the turmoil, with the Sensex crashing over 1,600 points and foreign investors pulling out billions.

Key Points: Rupee Hits 95 vs Dollar: Oil Prices, RBI Curbs Drive Fall

  • Rupee hits record low of 95.2 per dollar
  • RBI slashes banks' net open position limit to $100M
  • Brent crude surges 3% near $117 per barrel
  • Sensex crashes over 1,600 points, Nifty falls 2.14%
  • FIIs net sellers of Rs 4,367 crore equities
2 min read

Rupee hits 95 mark against dollar amid oil surge, RBI curbs

Indian rupee hits record low of 95.2 vs US dollar amid soaring oil prices and new RBI restrictions on bank positions. Sensex also plunges over 2%.

"The rupee has depreciated by 4.4 per cent against the US dollar in the March quarter."

New Delhi, March 30

The Indian rupee on Monday crossed the 95 per dollar mark for the first time, hitting 95.2 against the US dollar, down 0.3 per cent.

It ended at a record closing low of 94.83 per dollar, compared to Friday's close of 94.81.

The currency has depreciated by 4.4 per cent against the US dollar in the March quarter.

The rupee, which had opened on a strong note after the Reserve Bank of India (RBI) reduced the net open position limit that banks can keep overnight to $100 million, erased its gains and fell 160 paise from its opening level.

Moreover, the rupee fell about 1 per cent last week, its fourth consecutive weekly decline of a similar magnitude to hit a record low of 94.84 against the dollar.

After market hours on Friday, the central bank said banks must ensure that by April 10, their net open rupee positions in the onshore deliverable market do not exceed $100 million at the end of each business day.

Estimates suggest that the magnitude of these positions ranges from $25 billion to over $50 billion.

Worries over elevated oil prices have put Indian stocks on course for their worst monthly drop since March 2020 and bonds on track for their weakest fiscal year since 2023.

Escalation in the West Asia conflict has also pushed up global crude oil prices.

Brent crude futures jumped 3 per cent to an intra-day high of $116.70 per barrel, nearing a fresh 52-week high. Meanwhile, US benchmark West Texas Intermediate (WTI) rose over 3 per cent to cross $103 per barrel.

In March, the rupee fell by more than 4 per cent amid the geo-political tensions.

On the domestic equity market front, the Sensex settled at 71,947.55, down 1,635.67 points or 2.2 per cent, while the Nifty closed at 22,331.40, lower by 488.20 points or 2.14 per cent.

Foreign institutional investors sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.

- IANS

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Reader Comments

S
Sarah B
As an expat working here, I see both sides. A weaker rupee makes my remittances home stronger, but it also increases my cost of living in India. The global oil price surge is a major factor beyond India's control. Hope the situation in West Asia calms down soon.
A
Aditya G
The RBI's move to curb banks' open positions is a good step to reduce speculation, but it feels like a band-aid. The core issue is our massive oil import bill. We need to fast-track renewable energy and electric vehicles to reduce this vulnerability. Jai Hind! 🇮🇳
P
Priyanka N
My husband's small export business is getting some benefit, but our family budget is in chaos. School fees, grocery bills, LPG cylinder price - everything is rising. When will this inflation end? Feeling the pinch every day.
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Michael C
Respectfully, while external factors are at play, the consistent decline points to deeper structural issues. The government's capital expenditure is good, but we need more focus on attracting stable, long-term FDI instead of hot money that flees at the first sign of trouble. A more critical look at policy is needed.
K
Kavya N
Sensex down over 1600 points! That's scary for middle-class investors like us who put our savings in mutual funds and stocks for our children's future. The FIIs selling thousands of crores is a big worry. Hope the market recovers soon.

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