Rupee Plunges to New Record Low of 92.92 Against Dollar Amid US-Iran Tensions
Indian Rupee Falls to Record Low Against US Dollar
On March 20, the Indian rupee (INR) recorded a new low of 92.92 against the US dollar in early trade. This decline marks a 3 paise decrease from its previous low of 92.63 on Wednesday, March 18.
The depreciation of the rupee is attributed to the ongoing conflict in the Middle East, which has disrupted global energy supplies. As a result, oil prices have surged, reaching $120 per barrel on Thursday, March 19. This increase in oil prices has caused foreign investors to withdraw $8 billion from domestic equities in March, marking the largest monthly exodus since January 2025.
The pressure on the rupee is expected to persist in the short term, with analysts anticipating that concerns over rising oil prices will continue to impact the currency. The recent attacks on vital energy facilities in the Gulf region have led to a pullback in oil prices, with Brent crude easing to $107 per barrel on Friday, March 20.
Investor Takeaway
Investors should be cautious of potential market volatility due to rising oil prices and global energy tensions.
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