Indian Rupee Sinks to New Record Low of 94.73 Amid High Oil Prices and Geopolitical Tensions

The Indian rupee hit an all-time low of 94.73 on Friday, driven by a high oil prices ($107+) and nearly $12 billion in FII outflows this month. As the West Asia conflict disrupts supply chains and the US Dollar remains strong, the RBI appears to be allowing a managed slide rather than defending the currency at a specific level.

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The Indian rupee plummeted to a fresh all-time low | Image: Unsplash

The Indian rupee plummeted to a fresh all-time low on Friday, breaching the 94.70 mark as escalating West Asia tensions and a surge in crude oil prices triggered a massive sell-off in domestic assets.

At 2:13 p.m. IST, the rupee was trading at 94.73 against the US dollar, down nearly 0.8% from its previous close of 93.96. The currency has now depreciated by approximately 4% since the regional conflict began late last month, making it one of the worst-performing emerging market currencies this quarter.

  • Brent crude hovering at $107–$115 per barrel remains the primary headwind, bloating India's import bill and widening the current account deficit.
  • Foreign Institutional Investors (FIIs) remained net sellers for the 19th consecutive session, offloading over ₹1,805 crore in the latest round of equity liquidations.
  • While the central bank intervened via state-run banks to prevent a "runaway" slide past 95, it appears to be allowing a gradual market-determined depreciation.

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Published By : Shourya Jha

Published On: 27 March 2026 at 14:20 IST