Last Updated on March 14, 2026 12:36 am by INDIAN AWAAZ
BIZ DESK
– The Indian rupee hit a new psychological and historic low on Friday, March 13, 2026, provisionally settling at 92.37 against the US dollar. The currency’s decline was driven by a perfect storm of rising global oil prices, a dominant greenback, and a massive exodus of foreign funds from the domestic equity markets.
The Downward Spiral
The local unit opened the session at 92.33 and faced consistent pressure throughout the day, hitting an intra-day low of 92.47 before finishing 11 paise lower than its previous close. This “triple-threat” of economic factors led to the slump:
- Crude Oil Shock: Brent crude prices breached the $101 per barrel mark. The ongoing conflict in West Asia—involving Iran, Israel, and the U.S.—has raised fears of supply disruptions, directly impacting India’s import bill.
- Equity Bloodbath: The domestic stock market saw a massive sell-off, with the Sensex crashing 1,470 points (closing at 74,563) and the Nifty 50 dropping 488 points (settling at 23,151).
- Foreign Fund Outflows: The strengthening US Dollar Index (DXY) and global instability have prompted foreign institutional investors (FIIs) to pull capital out of emerging markets like India in favor of “safe-haven” assets.
Market Sentiment
The rupee has remained under sustained pressure as the West Asia conflict enters a more volatile phase. Analysts note that as long as crude remains above the $100 threshold and domestic equities continue their losing streak, the rupee may struggle to find a stable floor in the near term.