Rupee Crashes Past 93: India’s Currency Hits Historic Low Amid Oil Shock and Iran War Fury

Mumbai, March 20 (TNA) The Indian rupee plummeted to a record low of 93.28 against the US dollar on Friday, breaching the psychologically critical 93-mark for the first time in history as escalating Middle East tensions and soaring crude oil prices triggered a massive flight to safety.

Opening at 92.92, the currency weakened sharply to 93.08 in early trade before sliding further to 93.2750—a 0.7% daily drop that eclipses Wednesday’s previous low of 92.63, driven by relentless foreign investor outflows and a surging greenback amid US-Iran conflict escalation.

Brent crude’s climb above $111 per barrel, fueled by attacks on Gulf energy hubs and threats to the Strait of Hormuz, has amplified import cost pressures for oil-dependent India, which sources over 85% of its energy needs abroad, exacerbating the rupee’s 2.63% year-to-date decline and 7.96% annual weakening.

The Reserve Bank of India (RBI) adopted a defensive stance without aggressive intervention, allowing the depreciation amid dual deficits, importer hedging, and outward remittances, while overseas markets quoted USD/INR at 93.33 during yesterday’s holiday closure.

Market analysts highlighted additional headwinds from President Trump’s Iran policy uncertainties since his January 2025 inauguration, hawkish US Federal Reserve holds, and global supply chain disruptions, positioning the rupee among the worst-performing emerging market currencies YTD with a 4% slump.

Equity benchmarks offered mild cushioning with a positive open, but Nifty Bank indices tumbled 2-3%, signalling broader economic risks as higher fuel costs threaten inflation spikes and margin erosion for downstream oil firms like IOC and BPCL.