Rupee came under fresh pressure on March 30, 2026, slipping past the 95-per-dollar mark for the first time as rising tensions in West Asia rattled global markets and pushed up crude oil prices.
The sharp fall reflects growing nervousness among investors as the conflict in the Middle East shows no signs of easing. Higher crude prices have added to the strain, with India, one of the world’s largest oil importers, facing increased demand for dollars to pay for energy imports. This has put the rupee on the back foot.
The currency, however, recovered slightly later in the day, aided by intervention measures and market adjustments. Still, traders say volatility remains high and sentiment fragile.
Another factor weighing on the rupee is the steady outflow of foreign funds from Indian equities. As global investors turn cautious, capital has been moving out of emerging markets like India, further weakening the local currency.
The Reserve Bank of India has stepped in with measures to stabilise the forex market, including tightening rules around banks’ currency positions. While these steps offered temporary relief, their impact has been limited as global pressures continue to dominate.
Amid the turbulence, Finance Minister Nirmala Sitharaman sought to calm concerns, saying the Indian economy is on a “firm footing.” She noted that the rupee’s movement is in line with global trends and that it has held up better than several other Asian currencies facing similar challenges.