The Indian rupee fell to all-time low of 92.05 per US dollar on Wednesday (March 4), marking the first time the currency has crossed the 92/$ mark. Analysts say the pressure on the rupee could persist until the conflict in the Middle East eases.
The decline comes amid a sharp rise in oil prices and a global shift away from riskier assets, which has strengthened the dollar and rattled stock markets worldwide.
Brent crude has surged to around $85 per barrel, stoking concerns about inflation and widening import costs for energy-dependent economies like India.
The rupee has lost more than 2% so far this year, making it one of the worst-performing emerging market currencies in 2026.
While a brief recovery followed the US-India trade deal last month, foreign inflows proved temporary as geopolitical tensions escalated.
“Rupee weakness is being driven by a combination of rising oil prices, safe-haven demand for the dollar, and risk-off sentiment in global markets. Unless tensions in the Middle East ease, the currency is likely to remain under pressure,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.
Domestic equity markets mirrored global caution, with the Sensex tumbling over 1,000 points and the Nifty dropping more than 300 points in early trade.
On Monday (March 2), foreign investors pulled more than $350 million from Indian equities, further weighing on sentiment.
Analysts said the near-term support for the rupee is around 91.50/$, while resistance is seen near 92.50/$, with global risk sentiment expected to dominate trading in the coming sessions.
–With Reuters inputs
First Published: Mar 4, 2026 8:38 AM IST
