The Indian rupee has fallen to a record low against the US Dollar, raising concerns about further depreciation in the coming weeks. The rupee dropped more than 1% to around 93.73 per dollar, breaking its previous record of 92.63 set earlier this week. It later settled near 93.71, marking its sharpest weekly fall in recent years.
Experts say global tensions, especially the ongoing conflict involving Iran, have played a major role in weakening the rupee. The situation has pushed crude oil prices close to $120 per barrel. Since India imports most of its oil, higher prices increase demand for dollars, putting pressure on the local currency.
Another key reason is the continuous outflow of foreign investment. Foreign institutional investors (FIIs) have sold over Rs. 1 lakh crore worth of Indian equities in 2026 so far. This reflects a cautious approach by global investors amid rising uncertainty in international markets.
The strong performance of the US dollar is also affecting emerging market currencies like the rupee. The dollar index has risen sharply, supported by the US Federal Reserve’s tight monetary policy and reduced chances of interest rate cuts.
Domestic factors are adding to the pressure. Indian stock markets have corrected significantly in recent months, weakening investor confidence and increasing currency volatility. Supply disruptions near major oil routes have further increased concerns about inflation and economic stability.
According to market experts, the rupee may remain under pressure in the short term. It is expected to move towards 94 to 95 levels soon. If it crosses this range, the currency could weaken further to around 98.
While the Reserve Bank of India is actively intervening to control volatility, global factors continue to dominate. Experts warn that if oil prices stay high and the dollar remains strong, the rupee could face further decline, with the risk of eventually nearing the 100 mark.
