The Indian rupee touched a new low today amid global tensions and rising crude oil prices. On Friday, March 20, the rupee reached close to ₹93 against the dollar for the first time. This decline is not just a figure, but a sign of increasing pressure on the country’s economy. The increasing conflict in the Middle East, especially the tension between Iran and the US, has affected the energy supply, which is directly impacting an oil importing country like India.
On Friday morning, the rupee opened at 92.92 in the interbank forex market and within a short time it crossed the level of 93 and reached 93.08. Earlier on March 18, the rupee had fallen to the level of 92.63, but today’s fall created a new record. This shows that the pressure on the rupee is continuously increasing.
Oil prices increase concern
Crude oil prices saw a huge surge due to attacks on energy targets in the Middle East. On Thursday, Brent crude had reached around $120 per barrel, although on Friday it fell slightly and remained around $107. India imports a large part of its requirement, hence the cost of oil puts direct pressure on the rupee.
Big withdrawal of foreign investors
In the month of March, foreign investors have withdrawn more than $8 billion from the Indian stock market. Sales worth more than ₹7500 crore were recorded on Thursday alone. This is the biggest withdrawal after January 2025. Due to this attitude of investors, the position of the rupee has further weakened.
Mild recovery in stock market
However, there was some relief in the Indian stock market amid the fall in the rupee. Sensex rose by about 960 points and crossed 75,000, while Nifty also jumped by more than 300 points. This is an indication that the domestic market has not yet completely weakened.
What will happen next?
Experts believe that the pressure on the rupee may continue for now. If the rupee remains above 93 against the dollar, it can go to 93.20 to 93.40 levels. On the downside, 92.70 is considered an important support.
What effect will it have on the common man?
The weakness of the rupee has a direct impact on inflation. Petrol-diesel, gas and many imported items may become expensive. In such a situation, the pressure on the common man’s pocket is sure to increase.