Rupee Hits Record Low, Falling Below 92.57 Against Dollar Amid US-Iran Tensions

Indian Rupee Slips to Record Low Against US Dollar

On March 18, the Indian rupee breached its previous all-time low of ₹92.4750 to reach ₹92.57 against the US dollar, amid escalating tensions in the Middle East and elevated crude oil prices.

Indian Stock Markets Rally Despite Geopolitical Tensions

Despite rising geopolitical tensions in the Middle East and increasing crude oil prices, the Indian stock markets rallied for the third consecutive session. The Sensex soared 858 points (1.1%) to reach 76,929.30 while the Nifty 50 jumped 255 points to reach 23,836.

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Crude Oil Prices Decline Amid Supply Relief Hopes

Crude oil prices declined on Wednesday after Iraq resumed crude exports through a pipeline to Turkey's Mediterranean port of Ceyhan, raising hopes of some supply relief amid ongoing disruptions from Gulf producers. However, with no signs of easing tensions in the Iran conflict, Brent crude remained above $100 per barrel for four consecutive sessions. Brent futures slipped 31 cents (0.3%) to $103.12 per barrel while U.S. West Texas Intermediate (WTI) crude fell $1.56 (1.6%) to $94.65.

US Federal Reserve Policy Decision Tonight

The US Federal Reserve is set to announce its policy decision tonight, amid heightened uncertainty from the ongoing US-Iran conflict. Markets widely expect the Fed to keep interest rates unchanged at the March 2026 FOMC meeting. The tensions have disrupted global oil supplies, pushed prices higher, and raised concerns over persistent inflation above the Fed's 2% target while also threatening economic growth.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline