Indian Rupee Hits Record Low of 94.85 vs USD

The Indian rupee plunged to a record low of 94.85 against the US dollar on Friday, March 27, driven by surging crude oil prices and foreign investor outflows amid escalating tensions in the West Asia conflict.

In the interbank foreign exchange market, the rupee opened at 94.18 and weakened steadily throughout the day, settling 89 paise lower than its previous close of 93.96 from Wednesday. Markets had been closed on Thursday for the Ram Navami holiday. Forex traders attributed the sharp decline to sustained demand for dollars from importers and banks, compounded by sales from foreign institutional investors wary of global uncertainties. The currency has depreciated about 5 percent since the start of 2026, with nearly 4 percent of that loss occurring in March alone.

The primary catalyst was the ongoing US-Iran conflict, which has disrupted oil supplies and pushed Brent crude, the global benchmark, above 110 dollars per barrel in futures trading, up more than 2 percent on the day. Iran has restricted access to the Strait of Hormuz, a critical chokepoint for about 20 percent of the world's petroleum shipments, raising fears of prolonged supply shortages. Oil prices have more than...