BT Explainer: Why Indian rupee is falling against the US dollar | INR vs USD
The currency shed nearly 4% of in March alone and dropped more than 5% since the start of the year.
- Mar 27, 2026,
- Updated Mar 27, 2026 3:31 PM IST
Indian rupee hits record low: In 2026, the Indian rupee is experiencing a sharp decline. On Friday, March 27, the domestic currency breached the 94-to-a-dollar mark, hitting a fresh record low. This fall is primarily driven by relentless Foreign Institutional Investors (FIIs) outflows and escalating market jitters surrounding the US-Iran conflict.
At last check, the rupee had weakened by 0.48% to trade at 94.71 against the greenback, after touching the all-time low of 94.83. The currency shed nearly 4% of in March alone and dropped more than 5% since the start of the year.
The West Asia conflict has deeply unsettled markets, raising the alarm that oil supply disruptions could stretch on for much longer. With crude oil prices parked above the 100-dollar-per-barrel mark, the ripple effects are being felt across global economies.
Higher crude prices are driving higher domestic inflation fears, a scenario that may push the central bank to intervene with new policy measures to cool down the economy.
Ponmudi R, CEO of Enrich Money, also said that the rupee remains under pressure, weighed down by rising crude prices, continued FII outflows, and a stronger US dollar.
Ponmudi added, "The USD/INR pair continues to trade above the 94 mark, extending its upward momentum and reflecting persistent weakness in the Indian rupee.”
Ponmudi said that the technical structure remains strongly bullish in favour of US dollar, marked by higher highs and higher lows.
According to Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth, sustained high crude prices could widen India's current account deficit, put pressure on the rupee, and raise inflation expectations.
"This, in turn, may limit the flexibility of the Reserve Bank of India on interest rates, keeping financial conditions tighter for longer," Hariprasad said.
“A sustained move above 94.26 would further reinforce the bullish bias and could push the pair toward 94.5–94.7, with potential for fresh record highs. Immediate support is seen in the 94–93.7 range. Overall, the outlook remains constructive for USD/INR, with the rupee likely to stay under pressure amid global uncertainty and continued dollar strength," Ponmudi added.
Indian rupee hits record low: In 2026, the Indian rupee is experiencing a sharp decline. On Friday, March 27, the domestic currency breached the 94-to-a-dollar mark, hitting a fresh record low. This fall is primarily driven by relentless Foreign Institutional Investors (FIIs) outflows and escalating market jitters surrounding the US-Iran conflict.
At last check, the rupee had weakened by 0.48% to trade at 94.71 against the greenback, after touching the all-time low of 94.83. The currency shed nearly 4% of in March alone and dropped more than 5% since the start of the year.
The West Asia conflict has deeply unsettled markets, raising the alarm that oil supply disruptions could stretch on for much longer. With crude oil prices parked above the 100-dollar-per-barrel mark, the ripple effects are being felt across global economies.
Higher crude prices are driving higher domestic inflation fears, a scenario that may push the central bank to intervene with new policy measures to cool down the economy.
Ponmudi R, CEO of Enrich Money, also said that the rupee remains under pressure, weighed down by rising crude prices, continued FII outflows, and a stronger US dollar.
Ponmudi added, "The USD/INR pair continues to trade above the 94 mark, extending its upward momentum and reflecting persistent weakness in the Indian rupee.”
Ponmudi said that the technical structure remains strongly bullish in favour of US dollar, marked by higher highs and higher lows.
According to Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth, sustained high crude prices could widen India's current account deficit, put pressure on the rupee, and raise inflation expectations.
"This, in turn, may limit the flexibility of the Reserve Bank of India on interest rates, keeping financial conditions tighter for longer," Hariprasad said.
“A sustained move above 94.26 would further reinforce the bullish bias and could push the pair toward 94.5–94.7, with potential for fresh record highs. Immediate support is seen in the 94–93.7 range. Overall, the outlook remains constructive for USD/INR, with the rupee likely to stay under pressure amid global uncertainty and continued dollar strength," Ponmudi added.