The Indian rupee has fallen to a record low, crossing the 95 mark against the US dollar, marking its worst yearly decline in more than a decade. The sharp fall reflects growing pressure from global tensions, rising oil prices, and heavy foreign investor outflows.
On March 30, the rupee showed high volatility during trading. It started the day stronger at around 93.59 per dollar but quickly lost ground and slipped to 95.21. Later, it recovered slightly to close near 94.83, supported by likely intervention from the Reserve Bank of India.
Despite this support, the rupee has dropped nearly 11% over the financial year from April to March. This is its steepest fall since 2011–12, showing how challenging the year has been for the Indian currency.
Several factors have contributed to this decline. Foreign investors have pulled out more than $19 billion from Indian stock markets in the past year. At the same time, global uncertainty has increased due to geopolitical tensions and economic policies in major economies like the United States.
Rising crude oil prices have added further pressure. India depends heavily on imported oil, so higher prices increase demand for dollars, weakening the rupee. Recent conflicts in the Middle East have pushed oil prices above $115 per barrel, raising concerns about inflation and economic stability.
The central bank recently introduced limits on foreign exchange positions to control speculation. While this move provided temporary relief, experts believe it will not solve the deeper issues affecting the currency.
Analysts warn that the rupee may remain under pressure in the coming months. Factors such as global market trends, oil prices, and capital flows will continue to play a key role.
Overall, the current situation highlights the challenges facing the Indian economy in a volatile global environment, with the rupee’s performance closely tied to both domestic policies and international developments.
