Indian Rupee Hits Record Low of 93.12 Against US Dollar Amid West Asia Tensions

Indian Rupee Hits Record Low of 93.12 Against US Dollar Amid West Asia Tensions​

Rupee Weakens Sharply as Global Risks Intensify​

Mumbai, March 20: The Indian rupee plunged to a record low on Friday, falling to 93.12 against the US dollar, as escalating conflict in West Asia disrupted global supply chains and heightened risk aversion in financial markets.

The domestic currency declined by 0.55 percent to breach its previous low of 92.63 recorded earlier this week. Since the onset of tensions in the region, the rupee has depreciated by nearly 2 percent, reflecting sustained pressure from external factors.

USD/INR Trend Signals Continued Pressure​

Market indicators suggest that the rupee remains under strain, with the USD/INR pair trading above the 92.8 level. This movement points to continued weakness driven by elevated crude oil prices and cautious global sentiment.

A sustained move above the 93.00 mark could further strengthen the upward trend in the dollar against the rupee. Resistance levels are seen in the 93.20 to 93.40 range, while immediate support is placed near 92.70 and the 92.50 to 92.40 zone.

Equity Markets Rebound Despite Currency Weakness​

Despite the sharp fall in the rupee, domestic equity markets showed resilience during early trade on Friday. The Sensex surged over 900 points, registering gains of around 1 percent, while the Nifty advanced approximately 300 points, up 1.35 percent.

However, foreign institutional investors continued to exert pressure on the markets. Exchange data showed that FIIs remained net sellers, offloading equities worth Rs 7,558.19 crore on Thursday.

Oil Prices Retreat After US Signals Policy Shift​

Global crude oil prices moved lower after the United States indicated a possible easing of sanctions on Iranian oil exports. The development comes as efforts intensify to ensure smooth shipping through the Strait of Hormuz.

Brent crude futures dropped as much as 3.39 percent to an intraday low of $104.96 per barrel. Similarly, US West Texas Intermediate crude declined by 3.22 percent to $92.47.

The decline followed remarks by US Treasury Secretary Scott Bessent, who signaled that Washington may consider easing restrictions on Iranian oil already in transit to help stabilize global prices.

Crude Oil Still Elevated Amid Ongoing Conflict​

Despite the recent pullback, crude oil prices remain significantly elevated due to geopolitical tensions. As the West Asia conflict entered its 21st day, Brent crude has surged nearly 40 percent, rising from $77.74 on March 2 to $108.65 on March 19.

The sharp increase in oil prices continues to weigh on import-dependent economies like India, contributing to currency volatility and broader market uncertainty.