The Indian Rupee Hits A New Low Of ₹93.84 Against The US Dollar

The Indian rupee trades at ₹93.84 against the US dollar in early trade on 23 March 2026. It had moved past the 93 mark last week and has continued to weaken since then.

Oil prices are higher, while foreign flows have remained weak in recent sessions. How far can the rupee go from here?

Rupee Under Pressure Across Cycles

The rupee weakened to ₹93.84 per dollar in early trade, extending losses after hitting record lows of around ₹93.71 in recent sessions. On 20 March, the rupee dropped nearly 100 paise, its steepest intraday fall in four years.

Moves of this scale have typically coincided with periods of global stress. Since the beginning of the war in Iran, the rupee has declined 3%, reflecting the pressure from rising oil prices and capital outflows.

The rupee has seen similar pressure before. It had slipped to around ₹76.2 against the dollar in March 2020, when COVID-19 was at its peak.

Another phase came in 2022, when it moved past ₹83 for the first time. That period saw a sharp rise in crude prices after the Russia-Ukraine conflict, along with aggressive rate hikes in the US.

Those pressures are visible again, though the trigger this time is different.

What Is Driving The Rupee’s Weakness?

The pressure on the rupee is coming from multiple fronts, but crude oil remains central.

Brent crude has surged sharply amid the conflict, moving close to $120 per barrel earlier in the week, with sustained levels above $100 in recent sessions. For India, which imports over 80–85% of its crude requirements, higher oil prices directly increase the demand for dollars and widen the import bill.

Besides, the dollar supply in Indian markets is reducing since foreign investors have been pulling money out of Indian markets. Total outflows have crossed ₹1 lakh crore so far in 2026, with around ₹88,180 crore already pulled out in March so far.

The US dollar has stayed firm in recent sessions, with investors moving towards it amid the current uncertainty. That has added pressure on the rupee.

For now, both sides are moving against the rupee. Oil is pushing up dollar demand, while outflows are reducing supply in the market.

Also Read - FPI Selling Goes Past ₹1 Lakh Crore In 2026

What Lies Ahead For The Rupee?

A weaker rupee tends to show up first in fuel costs, especially when oil prices are already high. That can start feeding into transport, manufacturing and other sectors over time.

There is also a broader macro impact. Higher oil prices and a weaker rupee tend to widen the current account deficit, particularly for an import-heavy economy like India.

The Reserve Bank of India has been active in the currency market in recent weeks. Estimates suggest it has used over $20 billion from its reserves to manage volatility, along with forward market operations.

For now, the focus is on limiting sharp moves rather than holding the rupee at any specific level.

There is also some expectation in the market that the rupee could weaken further from here. Levels closer to ₹95 are being discussed if current conditions continue, though movement is likely to remain uneven in the near term.

Sources:

Live Mint

MSN

Economic Times

Money Control