The rupee on Friday weakened past 93 to the US dollar mark for the first time, with rising crude oil prices in the wake of the ongoing war in West Asia and capital outflows, including FPI-related, continuing to pressure it.

Opening at an all time low of 92.92 per USD, down 29 paise over the previous close, the rupee is currently trading at 93.22. In intraday trade so far, the Indian currency hit a high/ low of 92.88/93.22

Madan Sabnavis, Chief Economist, Bank of Baroda, noted that the currency market has faced considerable disruption with the onset of the war.

“Post February 28th, the immediate impact was on crude oil and natural gas, with the prices rising prodigiously. This has been an immediate pain point for all countries as supplies have been affected along with higher prices.

“The currency market has been affected by several factors. The first is the physical demand for dollars as denoted by imports. Second supplies have been driven by export growth (which has also been impacted by tensions on the seas), remittances and FPI movements,” he said.

Sabnavis observed that stock markets across the world are down, which was expected, and will continue to be in this nervous state until the outcome of the war becomes clearer.

“Third, central bank action has also helped to stabilise volatility. Last, is the strength of the dollar, which has been volatile but is getting stronger over the period. A stronger dollar has made other currencies weaker,” he said

Published on March 20, 2026