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Mumbai, March 20: The Indian rupee fell to a historic low on Friday. It crossed the 93 mark against the US dollar during early trade. Rising global tensions and foreign outflows continue to pressure the currency.
The Indian Rupee opened at 92.89 per dollar. It soon weakened further and traded around 93.15, marking a new record low against the US Dollar.
Why Rupee Is Falling
Currency experts linked the decline to multiple global factors:
- Rising crude oil prices
- Ongoing West Asia conflict
- Continuous selling by foreign investors
Experts said the situation remains volatile due to geopolitical uncertainty.
Impact of Crude Oil Prices
Brent crude recently touched high levels before cooling slightly. High oil prices increase India’s import bill and weaken the rupee.
Analysts believe that unless tensions ease, oil prices may stay elevated.
Foreign Outflows Add Pressure
Foreign Portfolio Investors (FPIs) have sold equities worth over ₹80,000 crore since March 1. This large outflow has added significant pressure on the rupee.
Experts said continued selling by foreign investors remains a key concern for currency stability.
RBI Intervention Slows Fall
The Reserve Bank of India has stepped in to manage volatility. However, intervention has only slowed the decline, not reversed it.
Market Outlook
Experts believe the rupee may remain under pressure in the near term. A possible de-escalation in West Asia tensions could provide some relief.
Technical analysts suggest:
- Resistance levels: 93.20 – 93.40
- Support levels: 92.70 and 92.40
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