Rupee (INR) touched 93 per US dollar for the first time on Friday, March 20. Rupee fell 3 paise to 92.92 against US dollar in early trade, intensifying losses caused by a disruption in global energy supplies due to the conflict in the Middle East, which risks disturbing the growth-inflation equilibrium for Asia’s third-largest economy.
The rupee today surpassed its earlier low of 92.63 experienced on Wednesday, March 18.
At the interbank foreign exchange market, the domestic currency started at 92.92 against the US dollar before surpassing the 93-level for the first time, trading at 93.08, which is a decrease of 19 paise from the last closing rate.
Analysts anticipate that the pressure on the rupee will probably persist in the short term, as concerns regarding the impact of rising oil prices have led foreign investors to withdraw more than $8 billion from domestic equities in March, marking the largest monthly exodus since January 2025.
Oil prices jumped to almost $120 per barrel on Thursday, March 19 due to assaults on vital energy facilities in the Gulf region, but saw a pullback on Friday. Brent crude eased to $107 per barrel, after climbing to $119.13 a barrel in the prior session because of the attacks on energy infrastructure in the Middle East.
On the domestic equity market, the Sensex bounced back from Thursday’s decline, rising by 960.67 points, or 1.29%, to reach 75,167.91, while the Nifty 50 increased by 311.50 points, or 1.35%, to 23,313.65.
According to exchange data, foreign institutional investors sold shares worth ₹7,558.19 crore on a net basis on Thursday.
Rupee outlook
Ponmudi R, CEO of Enrich Money, said that USD/INR is trading trading at 93 reflects continued pressure on the Indian rupee amid elevated crude prices and global risk aversion. The structure remains bullish, supported by higher highs and higher lows.
“A sustained move above 93.00 will strengthen the upside bias, with resistance at 93.20–93.40. On the downside, support is placed at 92.70, followed by 92.50–92.40,” said Ponmudi.
Further, Amit Pabari, MD, Research Team, CR Forex Advisors, said that technically, as the pair has broken the 92.50 level, 93.00–93.20 should act as strong resistance. On the downside, support is now placed at 92.00–92.20.
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