Rupee fell sharply on Wednesday, 4 March 2026, hitting an all-time low of ₹92.18 against the US dollar in early trade. The currency dropped 69 paise from its previous close, breaching the ₹92 level for the first time.
The sharp fall comes because of the rising geopolitical tensions in the Middle East, which have pushed global crude oil prices higher. Brent crude crossed $82 per barrel, raising concerns over India’s import bill and inflation. As India imports more than 80% of its crude oil, higher prices directly impact the rupee.
The weakening currency also followed a sell-off in domestic equity markets, with foreign investors pulling out funds amid global uncertainty. A stronger US dollar and increased demand for safe-haven assets further added pressure on emerging market currencies, including the rupee.
Market experts said the combination of rising oil prices, global risk aversion, and foreign capital outflows is weighing heavily on the currency. They added that volatility may continue if crude prices remain elevated.
The Reserve Bank of India is closely monitoring the situation and may intervene to curb excessive fluctuations.
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