Rupee Breaches 93 Mark, Hits Record Low of 93.49 Against Dollar Amid Oil Surge, FII Outflows

The Indian currency plunged sharply on Friday, March 20, breaching the crucial 93 per dollar mark for the first time in history and hitting a fresh intra-day low of 93.49 against the US dollar. The rupee fell 60 paise today, one of the sharpest intraday declines.

The sharp fall in the rupee came as the US dollar strengthened, foreign institutional investor (FII) outflows continued, and global crude oil prices remained elevated amid ongoing West Asia tensions.

According to Forex data, the rupee opened weaker at 92.92 per dollar and quickly slipped past the 93 level, extending losses through the session.

Why is the rupee falling today?

Multiple global and domestic factors are weighing on the rupee. Forex traders point to persistent FII outflows, rising crude oil prices, and geopolitical tensions in West Asia as the key triggers behind the sharp depreciation.

"Higher oil import costs fuelled concerns over inflation and a widening current account deficit, with India importing over 80% of its energy needs. Importers stepped up dollar purchases, while foreign investors have pulled nearly $8 billion from Indian equities so far in March, intensifying capital outflows. Meanwhile, the Reserve Bank of India has intervened heavily, with net forward dollar sales approaching $100 billion across onshore and offshore markets, using forward contracts and swaps. However, ongoing pressure from thin liquidity and persistent external risks still pushed the rupee past the 92.50 level." as per Trading Economics.

Brent crude is currently hovering around $107.80 per barrel, and fears that prices could spike to $180 per barrel have further dented sentiment.

Dollar Strength Adds to Pressure

The dollar index was trading 0.17% higher at 99.40 at the time of writing, adding to the weakness in emerging market currencies.

The rupee has been under pressure for the past few sessions. It had already slumped 49 paise to close at a record low of 92.89 on March 19 before extending losses further on Friday.

"The Indian rupee resumed its downward spiral to fresh record lows following Thursday's holiday, battered by a 'double whammy' of persistent foreign fund outflows and surging crude oil prices. With a widening trade deficit and inflationary pressures mounting, the RBI to adopt a status quo in April meeting. While geopolitical volatility remains a key driver for short-term sentiment, the USDINR technical setup remains bullish; having breached ascending channel resistance, the pair eyes a 93.75 level with support shifting to 92.90." said Dilip Parmar, Senior Research Analyst, HDFC Securities.

Rupee vs. Global Peers in 2026

The Indian rupee has underperformed most major global currencies in 2026 due to pressure from rising oil prices, capital outflows and external vulnerabilities. While the Japanese yen has also weakened against the dollar, it has held up better than the rupee. Similarly, the Chinese yuan has been relatively stable due to tighter central bank control, effectively outperforming the rupee.
In developed markets, both the euro and British pound have weakened against the dollar, but not as sharply as the rupee.

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