16.03.202605:23:27UTC+00Indian Rupee Hovers at Record Low

The Indian rupee hovered near 92.45 per dollar, trading close to record lows amid elevated crude oil prices and continued foreign equity outflows. Brent crude rose above $106 per barrel, extending gains of nearly 40% since the onset of the Iran conflict on February 28. Heightened military disruptions and mounting risks to key oil shipping routes have deepened concerns over global energy supplies. Persistently high oil prices are compelling importers to increase dollar purchases, widening India’s trade deficit and delivering a significant terms-of-trade shock. Investor sentiment remains fragile: overseas portfolio investors have pulled more than $5.5 billion from Indian equities in March, alongside an 8% decline in the Nifty 50 so far this month. This has curtailed foreign currency inflows and intensified depreciation pressures on the rupee, in the context of a broadly stronger US dollar. The Reserve Bank of India has intervened in the foreign exchange market to stabilize the currency and contain excessive volatility.