Rupee Hits Record Low of ₹93.72 Against the Dollar
Why in the news
The Indian rupee slid to an all-time low in March 2026 as costlier crude and West Asia tension pushed up dollar demand.
Key facts
| Indicator | Figure |
|---|---|
| Record low | ₹93.72 per dollar (intraday ₹93.77) |
| One-day fall | 1.15% |
| FY26 depreciation | 8.8%, worst since FY14 |
| March decline | 2.92% |
| Dollar index | Near 99.58 |
| Equity outflows (MTD) | $8.4 billion |
Pressure points
- Crude oil: prices up 120% since the West Asia crisis began, raising the import bill and the Current Account Deficit.
- Dollar demand: oil marketing companies buying dollars while FPIs withdraw funds.
- RBI intervention: likely $4-5 billion sold; without it the rupee might have reached ₹95.
- Forward book: about $107 billion of oversold positions; RBI must buy dollars as contracts mature.
- Capital flows: weak investor mood, bond flows turning negative.
Implications
- Costlier imports push fuel prices up and feed into food and core inflation.
- The higher oil bill widens the current account deficit.
- Oil and chemical importers suffer; exporters may gain for a while.
Exam angle
- Record level: ₹93.72 per dollar.
- Related terms: CAD, FPI, forward book, dollar index.
- FY26 depreciation: 8.8%.