Indian Rupee Hits Record Low of 94.56 Against US Dollar

On March 27, 2026, the Indian rupee fell to an unprecedented low of 94.56 against the US dollar during intra-day trading. This marks the first time the currency has breached the 94.50 mark, driven by high oil prices and a strengthening dollar amid ongoing regional conflicts in West Asia. The decline comes at a time when the Indian equity markets have also been under significant strain, leading to further pressures on the rupee.

The local currency opened at 94.18, but soon began to depreciate, eventually dropping 60 paise from its previous close. This steep decline followed a 20 paise fall to close at 93.96 against the US dollar on March 25. On the day prior, all major markets—including stock, foreign exchange, commodities, and bullion—were closed in observance of Ram Navami.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, explained the situation, noting, "With consistent buying from oil companies, the rupee breached 94.50 with exporters holding their inflows, while importers buy dollars for their payables."

In addition to the pressures from oil imports, the dollar index, which measures the performance of the US dollar against a basket of six currencies, was reported to be 0.08 per cent higher at 99.67. Brent crude, the global benchmark for oil, spiked to USD 107.4 per barrel before marginally decreasing by 0.53 per cent in futures trading.

As for the domestic stock market, the Sensex witnessed a drop of 1,212.15 points, or 1.61 per cent, reaching 74,061.30, while the Nifty lost 355.20 points, or 1.52 per cent, falling to 22,951.25. Additionally, foreign institutional investors were observed selling equities worth Rs 1,805.37 crore on a net basis the same day, as per data from the Indian stock exchange.

These developments come amid growing concerns over the stability of the Indian currency and the broader implications for the economy, especially as global economic factors continue to exert influence over domestic markets.