Indian Rupee Hovers Near Record Low

2026-03-16 05:23 By Erika Ordonez 1 min. read

The Indian rupee hovered around 92.45 per dollar, trading near record lows, pressured by elevated crude prices and sustained foreign equity outflows.

Oil prices remain high after surging since the Iran conflict began in late February, as military disruptions and risks to major oil shipping routes stoke global energy concerns.

Persistently high energy costs have increased dollar demand from importers, widening India’s trade deficit and creating a material terms-of-trade shock.

Investor sentiment also stayed fragile, as overseas portfolio investors have withdrawn over $8 billion from Indian equities since the conflict began, coinciding with a more than 6% drop in the Nifty 50 so far this month, reducing foreign currency inflows and amplifying depreciation pressures amid firm US dollar strength.

The Reserve Bank of India has intervened in FX markets to stabilize the currency near 92.50, helping limit further declines.

Focus now shifts to the Federal Reserve, with rates likely steady.



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