The Indian rupee has been depreciating against the US dollar almost steadily since the Covid pandemic. While this is consistent with the longer-term historical pattern of roughly 2 to 3 per cent average annual weakening, a key question being raised is that the Indian currency is the worst performer in Asia vis-à-vis the dollar. What could be the reasons? India’s higher inflation relative to the US, persistent current-account deficits and capital-flow volatility are among the obvious ones. India’s central bank, the Reserve Bank of India (RBI), has been managing the depreciation, mainly by selling dollars through open market operations. Here are the facts and figures.<h2>How Indian rupee depreciated against the US dollar since Covid pandemic</h2>The peak stress was felt in the pre-Covid period itself, when the Indian rupee was around 72 against the dollar. By the end of 2021, it was at around 75 to a dollar. A sharp drop happened at the end of 2022, to around 83 per dollar. Between 2023 and 2025, it hovered in the 82–85 range, which was considered a relatively stable phase. But by the end of 2025, the slide worsened to more than 90, breaching what could be termed a psychological barrier at the time. Currently, the rupee is at around 95, after testing record lows of around 96 to a dollar earlier this year.For the period from early 2020 to late 2026, this amounts to an overall substantial decline of around 30 per cent in nominal terms. If one takes the January 2022 average of 74.4 against late-2026 levels of 95, the depreciation is about 28 per cent.Also read: <a href="https://www.wionews.com/india-news/indian-stock-market-crash-sensex-nifty-six-month-low-oil-fpi-rupee-1790610541704">Indian stock market crashes, 7.4 lakh crore wiped out: What is driving the fall?</a><h2>Indian rupee’s performance against Asian peer currencies</h2>During the Covid period, the depreciation was considered mild to moderate, as the Indian rupee was relatively resilient compared with some Asian peers, thanks to strong domestic recovery, capital inflows and RBI management. It was not the worst-hit currency in Asia at the time.But in 2022, it became one of the weakest Asian performers, down 10 to 11 per cent. This was also a period of several global economic and geopolitical events that affected fuel prices, one of the largest components of India’s import bill. These include aggressive rate hikes by the US Federal Reserve, which the RBI's monetary policy broadly mirrored, a resurgence of the US dollar, and oil price spikes driven by the Russia–Ukraine war.&nbsp;India imports close to 90 per cent of its crude oil requirement, leaving the rupee particularly exposed to energy-price shocks.This was also a period that saw foreign portfolio investors (FPIs) pulling out of India. Indian equities, with a relatively low number of companies involved in emerging technologies such as artificial intelligence (AI), were regional underperformers. &nbsp;Foreign investors reduced capital inflows that could otherwise have supported the rupee.As a result of these factors, India’s current account deficit widened significantly during this period.Also read: <a href="https://www.wionews.com/world/how-global-tensions-are-draining-strength-from-indian-rupee-1778835835916">How global tensions are draining strength from Indian rupee</a>&nbsp;The 2023–2024 period was relatively stable or modest. The rupee, in fact, often outperformed or matched peers in volatility terms, benefiting from higher Indian real yields, bond-index inclusion prospects and RBI interventions. It was at times among the more stable emerging-market or Asian currencies.But the weakness accelerated in late 2024–2025, with the rupee becoming Asia’s worst or near-worst performer, going down 4.9 per cent in 2025. A different but related set of events happened in this period. US tariffs on Indian exports, including secondary penalties linked to buying Russian oil, were one major factor. FPI equity outflows increased amid concerns about India’s growth and corporate earnings. Uncertainties about the US–India trade deal and persistent current-account pressure were also reasons.During this period, some other Asian currencies, such as the Malaysian ringgit, Thai baht, Taiwan dollar, Korean won and Singapore dollar, strengthened or held up better amid a softer dollar phase. Some of them were helped by trade surpluses or positive net international investment positions (NIIP), while India has a negative NIIP.In 2026, the situation worsened partly due to the start and continuation of the Iran–US–Israel war, the closure of the Strait of Hormuz, and the resulting pressure on oil prices, bringing in a higher import bill. Benchmark Brent crude has been swinging between $70 and nearly $110 per barrel during the first and second quarters of this financial year.Global bond-yield spikes, ongoing FPI caution and external deficits are adding to the pressure. But a steeper fall has been prevented through RBI interventions, as well as balance-of-payments measures such as attracting large deposits and borrowing inflows.Also read: <a href="https://www.wionews.com/world/fed-rate-hike-4-percent-india-rupee-fpi-stock-market-inflation-1789659953082">Fed hikes rates to 4%: Why India’s rupee, FPI and stock market face pressure</a><h2>Structural and recurring reasons for the rupee underperformance</h2>The Indian rupee is being boxed in by these key factors: high oil-import dependence, current-account and trade deficits, capital-flow volatility, interest-rate differentials and global US dollar strength, and a negative NIIP.The RBI’s focus is to prevent a speculative attack on the rupee by curbing volatility, rather than defending the Indian currency at a specific level against the dollar. It intervenes through spot and forward sales in the foreign-exchange market and has built large reserves.In short, what the rupee is witnessing currently is an orderly, or crawling, depreciation rather than an outright crisis.<a href="https://www.wionews.com/videos/rupee-hits-96-for-first-time-ever-1778996756301/embed">https://www.wionews.com/videos/rupee-hits-96-for-first-time-ever-1778996756301/embed</a><h2>Rupee’s nominal path reflects external vulnerabilities more than domestic factors</h2>India is on a positive trajectory when it comes to GDP growth. When one looks at rupee depreciation from a longer-term perspective, the average depreciation remains in the 2–3 per cent range. But the currency is witnessing uneven bursts around global shocks.When compared with other emerging-market currencies, India has shown greater resilience, buttressed by higher forex reserves, including inflows from remittances. It has, however, lagged behind surplus-running or less oil-dependent Asian currencies during periods of dollar softness or commodity stress.

The Indian rupee is one of Asia’s weakest currencies against the US dollar, but one needs to look deeper. India's oil dependence, capital outflows and deficits are among the reasons

The Indian rupee has been depreciating against the US dollar almost steadily since the Covid pandemic. While this is consistent with the longer-term historical pattern of roughly 2 to 3 per cent average annual weakening, a key question being raised is that the Indian currency is the worst performer in Asia vis-à-vis the dollar. What could be the reasons? India’s higher inflation relative to the US, persistent current-account deficits and capital-flow volatility are among the obvious ones. India’s central bank, the Reserve Bank of India (RBI), has been managing the depreciation, mainly by selling dollars through open market operations. Here are the facts and figures. How Indian rupee depreciated against the US dollar since Covid pandemic The peak stress was felt in the pre-Covid period itself, when the Indian rupee was around 72 against the dollar. By the end of 2021, it was at around 75 to a dollar. A sharp drop happened at the end of 2022, to around 83 per dollar. Between 2023 and 2025, it hovered in the 82–85 range, which was considered a relatively stable phase. But by the end of 2025, the slide worsened to more than 90, breaching what could be termed a psychological barrier at the time. Currently, the rupee is at around 95, after testing record lows of around 96 to a dollar earlier this year. For the period from early 2020 to late 2026, this amounts to an overall substantial decline of around 30 per cent in nominal terms. If one takes the January 2022 average of 74.4 against late-2026 levels of 95, the depreciation is about 28 per cent. Also read: Indian stock market crashes, 7.4 lakh crore wiped out: What is driving the fall? Indian rupee’s performance against Asian peer currencies During the Covid period, the depreciation was considered mild to moderate, as the Indian rupee was relatively resilient compared with some Asian peers, thanks to strong domestic recovery, capital inflows and RBI management. It was not the worst-hit currency in Asia at the time. But in 2022, it became one of the weakest Asian performers, down 10 to 11 per cent. This was also a period of several global economic and geopolitical events that affected fuel prices, one of the largest components of India’s import bill. These include aggressive rate hikes by the US Federal Reserve, which the RBI's monetary policy broadly mirrored, a resurgence of the US dollar, and oil price spikes driven by the Russia–Ukraine war. India imports close to 90 per cent of its crude oil requirement, leaving the rupee particularly exposed to energy-price shocks. This was also a period that saw foreign portfolio investors (FPIs) pulling out of India. Indian equities, with a relatively low number of companies involved in emerging technologies such as artificial intelligence (AI), were regional underperformers. Foreign investors reduced capital inflows that could otherwise have supported the rupee. As a result of these factors, India’s current account deficit widened significantly during this period. Also read: How global tensions are draining strength from Indian rupee The 2023–2024 period was relatively stable or modest. The rupee, in fact, often outperformed or matched peers in volatility terms, benefiting from higher Indian real yields, bond-index inclusion prospects and RBI interventions. It was at times among the more stable emerging-market or Asian currencies. But the weakness accelerated in late 2024–2025, with the rupee becoming Asia’s worst or near-worst performer, going down 4.9 per cent in 2025. A different but related set of events happened in this period. US tariffs on Indian exports, including secondary penalties linked to buying Russian oil, were one major factor. FPI equity outflows increased amid concerns about India’s growth and corporate earnings. Uncertainties about the US–India trade deal and persistent current-account pressure were also reasons. During this period, some other Asian currencies, such as the Malaysian ringgit, Thai baht, Taiwan dollar, Korean won and Singapore dollar, strengthened or held up better amid a softer dollar phase. Some of them were helped by trade surpluses or positive net international investment positions (NIIP), while India has a negative NIIP. In 2026, the situation worsened partly due to the start and continuation of the Iran–US–Israel war, the closure of the Strait of Hormuz, and the resulting pressure on oil prices, bringing in a higher import bill. Benchmark Brent crude has been swinging between $70 and nearly $110 per barrel during the first and second quarters of this financial year. Global bond-yield spikes, ongoing FPI caution and external deficits are adding to the pressure. But a steeper fall has been prevented through RBI interventions, as well as balance-of-payments measures such as attracting large deposits and borrowing inflows. Also read: Fed hikes rates to 4%: Why India’s rupee, FPI and stock market face pressure Structural and recurring reasons for the rupee underperformance The Indian rupee is being boxed in by these key factors: high oil-import dependence, current-account and trade deficits, capital-flow volatility, interest-rate differentials and global US dollar strength, and a negative NIIP. The RBI’s focus is to prevent a speculative attack on the rupee by curbing volatility, rather than defending the Indian currency at a specific level against the dollar. It intervenes through spot and forward sales in the foreign-exchange market and has built large reserves. In short, what the rupee is witnessing currently is an orderly, or crawling, depreciation rather than an outright crisis. https://www.wionews.com/videos/rupee-hits-96-for-first-time-ever-1778996756301/embed Rupee’s nominal path reflects external vulnerabilities more than domestic factors India is on a positive trajectory when it comes to GDP growth. When one looks at rupee depreciation from a longer-term perspective, the average depreciation remains in the 2–3 per cent range. But the currency is witnessing uneven bursts around global shocks. When compared with other emerging-market currencies, India has shown greater resilience, buttressed by higher forex reserves, including inflows from remittances. It has, however, lagged behind surplus-running or less oil-dependent Asian currencies during periods of dollar softness or commodity stress.

The Indian rupee is one of Asia’s weakest currencies against the US dollar, but one needs to look deeper. India's oil dependence, capital outflows and deficits are among the reasons

Why is Indian rupee the lowest-performing Asian currency against the US dollar? Reasons are not that simple

SBI Research has urged the Reserve Bank of India (RBI) to take a stronger intervention to support the rupee, stating that the recent weakening of the currency appears disproportionate to India's economic fundamentals. In its latest report, SBI Research observed that the rupee's fall against the US dollar has been notably rapid despite the Indian economy continuing to display robust macroeconomic strength. "The speed of rupee depreciation has been reckless, and the rupee took only 152 days to depreciate by Rs 5 per dollar (from Rs 90 to Rs 95)," the report said, underscoring that the rupee touched 96.83 against the US dollar on May 20. The report suggested that the current level of depreciation exceeds what would normally be justified by India's underlying economic conditions. "The present Rupee depreciation is indeed higher when seen against India's macroeconomic fundamentals and clearly when compared with other currencies against the dollar strength," SBI Research said. It further noted that the country's foreign exchange reserves remain strong enough to help curb excessive volatility in the currency market. According to the report, India's reserves are adequately positioned to counter a one-sided decline in the rupee.&nbsp;Also read: <a href="https://www.wionews.com/india-news/india-slashes-export-duties-on-petrol-diesel-and-atf-new-rates-effective-june-1-1780203850179">India slashes export duties on petrol, diesel and ATF; new rates effective June 1</a><h3>RBI past intervention</h3>Although foreign exchange reserves have fallen by around USD 47 billion since February 27, 2026, they still stand at approximately USD 680 billion, providing the RBI with ample capacity to step in when necessary. SBI Research added that a stronger and more sustained intervention by the central bank could help steady the rupee during periods of global market uncertainty. It pointed out that past episodes of decisive RBI intervention have often been followed by a recovery in the currency's value. The research team also discovered that the weakness of the rupee seems driven not only by global dollar strength but also by risk aversion connected to the ongoing conflict in West Asia and large foreign portfolio outflows from Indian equities. It further noted that India has experienced net foreign institutional investor (FII) equity outflows of USD 22.7 billion since the West Asia conflict started. It also argued that the rupee is currently undervalued and has fallen beyond levels implied by broader trade-weighted measures. "The current Rupee value is not in synchronization with India's domestic macro fundamentals," the report said.

SBI Research team discovered that the weakness of the rupee seems driven not only by global dollar strength but also by risk aversion connected to the ongoing conflict in West Asia and large foreign portfolio outflows from Indian equities.

SBI Research has urged the Reserve Bank of India (RBI) to take a stronger intervention to support the rupee, stating that the recent weakening of the currency appears disproportionate to India's economic fundamentals. In its latest report, SBI Research observed that the rupee's fall against the US dollar has been notably rapid despite the Indian economy continuing to display robust macroeconomic strength. "The speed of rupee depreciation has been reckless, and the rupee took only 152 days to depreciate by Rs 5 per dollar (from Rs 90 to Rs 95)," the report said, underscoring that the rupee touched 96.83 against the US dollar on May 20. The report suggested that the current level of depreciation exceeds what would normally be justified by India's underlying economic conditions. "The present Rupee depreciation is indeed higher when seen against India's macroeconomic fundamentals and clearly when compared with other currencies against the dollar strength," SBI Research said. It further noted that the country's foreign exchange reserves remain strong enough to help curb excessive volatility in the currency market. According to the report, India's reserves are adequately positioned to counter a one-sided decline in the rupee. Also read: India slashes export duties on petrol, diesel and ATF; new rates effective June 1 RBI past intervention Although foreign exchange reserves have fallen by around USD 47 billion since February 27, 2026, they still stand at approximately USD 680 billion, providing the RBI with ample capacity to step in when necessary. SBI Research added that a stronger and more sustained intervention by the central bank could help steady the rupee during periods of global market uncertainty. It pointed out that past episodes of decisive RBI intervention have often been followed by a recovery in the currency's value. The research team also discovered that the weakness of the rupee seems driven not only by global dollar strength but also by risk aversion connected to the ongoing conflict in West Asia and large foreign portfolio outflows from Indian equities. It further noted that India has experienced net foreign institutional investor (FII) equity outflows of USD 22.7 billion since the West Asia conflict started. It also argued that the rupee is currently undervalued and has fallen beyond levels implied by broader trade-weighted measures. "The current Rupee value is not in synchronization with India's domestic macro fundamentals," the report said.

SBI Research team discovered that the weakness of the rupee seems driven not only by global dollar strength but also by risk aversion connected to the ongoing conflict in West Asia and large foreign portfolio outflows from Indian equities.

Rupee's fall is ‘reckless’, RBI must step in more aggressively: SBI Research

#Gravitas The rupee’s record low could soon show up in the monthly budgets of ordinary Indians through costlier fuel, more expensive gadgets, higher foreign travel bills and rising prices of daily essentials.  While the impact may not be immediate, a prolonged weakness in the rupee could make life more expensive for households across the country.


Indian Rupee Hits All-Time Low, What Does It Mean for the Common Man? 

The Indian rupee slumped to a record low of 95.8 against the US dollar, emerging as Asia’s worst-performing currency in 2026 amid rising crude oil prices, foreign investor outflows, and geopolitical tensions.

The Indian rupee slumped to a record low of 95.8 against the US dollar, emerging as Asia’s worst-performing currency in 2026 amid rising crude oil prices, foreign investor outflows, and geopolitical tensions.

Indian rupee becomes Asia’s worst-performing currency- Who else is on the list?

Indian Rupee hits a record low as global fuel crisis intensifies pressure on emerging market currencies. Rising crude oil prices, dollar strength, and widening import bills are shaking investor confidence and adding strain on India’s forex reserves.


Indian Rupee Slides to Record Low Amid Global Fuel Crisis 

Oil prices have moved past the $126 a barrel mark after surging 13 per cent in the last 24 hours, and then settling around &nbsp;$122.31 a barrel in intraday trading, its highest level since 2022. Last time Brent Crude topped $120, it was during the Russian invasion of Ukraine, then it was trading at $139 per barrel. In the early hours of Thursday, the US benchmark crude WTI also rose more than 3 per cent and hit over $110 per barrel. The Indian basket of crude oil, representing a weighted average of sour (Oman/Dubai) and sweet (Brent) grades, is hovering around $116+ per barrel, lower than the peak of $135+ per barrel on April 7.&nbsp;<h2>Why are the markets spooked?</h2>The recent surge is the result of the stalemate in the US-Iran talks. Trump appears to be willing to let the Hormuz blockade continue, as he is unwilling to allow use Iran the nuclear leverage. Iran wants the postponement of nuclear negotiations and lifting of the US blockade in the Persian Gulf in exchange for lifting the Hormuz blockade. A deal which will be considered a defeat for Trump by many among his voters, as the US is going for midterms later in 2026. Meanwhile, the UAE has decided to exit OPEC to boost its production capacity and manage the increased demand, but the whole exercise is futile unless the usual traffic is restored in the Strait of Hormuz. The market is spooked by these stand offs, and is anticipating an extended disruption in the naval traffic through the vital choke point.&nbsp;Also Read: <a href="https://www.wionews.com/world/uae-exits-opec-impact-oil-petrodollar-global-markets-1777448292891">UAE exits OPEC: What it means for UAE, petrodollar system and global markets</a><h2>What does Oil $120+ mean for the Indian market and the rupee?</h2>The Indian market traded weakly following the global cue. At the time of closing, Sensex was down 582.86 points or 0.75 per cent at 76,913.50, and the Nifty was down 180.1 points or 0.74 per cent at 23,997.55. Crude-sensitive stocks like Oil company HPCL fell 2.14 per cent, BPCL declined 1.38 per cent, and IOC slipped 1.3 per cent in the intraday trading. Similar weak trading was seen in aviation, tyre and paint stocks.Between January 1 and April 30, the Brent Crude changed from $60.75 a barrel to $126 a barrel, a 100-110 per cent rise in prices. During the same time period, the Indian Rupee weakened from 89.96 to 95.01 against each dollar, approximately by 5.61 per cent. The rupee's slide is not just due to oil shock; it had been on a downward trajectory since mid or early 2025, since US President Donald Trump's election to the office and his trade war. For a country like India, which is import-dependent for fertilisers and energy needs and trades mostly in dollars, the Rupee-oil shock means a mounting import bill, a widening of the trade deficit, inflation and potential slowing down of economic growth.&nbsp;

Global oil prices jump above $120 amid US-Iran tensions and Hormuz disruption fears. Here’s what it means for India, markets, and the rupee.

Oil prices have moved past the $126 a barrel mark after surging 13 per cent in the last 24 hours, and then settling around $122.31 a barrel in intraday trading, its highest level since 2022. Last time Brent Crude topped $120, it was during the Russian invasion of Ukraine, then it was trading at $139 per barrel. In the early hours of Thursday, the US benchmark crude WTI also rose more than 3 per cent and hit over $110 per barrel. The Indian basket of crude oil, representing a weighted average of sour (Oman/Dubai) and sweet (Brent) grades, is hovering around $116+ per barrel, lower than the peak of $135+ per barrel on April 7. Why are the markets spooked? The recent surge is the result of the stalemate in the US-Iran talks. Trump appears to be willing to let the Hormuz blockade continue, as he is unwilling to allow use Iran the nuclear leverage. Iran wants the postponement of nuclear negotiations and lifting of the US blockade in the Persian Gulf in exchange for lifting the Hormuz blockade. A deal which will be considered a defeat for Trump by many among his voters, as the US is going for midterms later in 2026. Meanwhile, the UAE has decided to exit OPEC to boost its production capacity and manage the increased demand, but the whole exercise is futile unless the usual traffic is restored in the Strait of Hormuz. The market is spooked by these stand offs, and is anticipating an extended disruption in the naval traffic through the vital choke point. Also Read: UAE exits OPEC: What it means for UAE, petrodollar system and global markets What does Oil $120+ mean for the Indian market and the rupee? The Indian market traded weakly following the global cue. At the time of closing, Sensex was down 582.86 points or 0.75 per cent at 76,913.50, and the Nifty was down 180.1 points or 0.74 per cent at 23,997.55. Crude-sensitive stocks like Oil company HPCL fell 2.14 per cent, BPCL declined 1.38 per cent, and IOC slipped 1.3 per cent in the intraday trading. Similar weak trading was seen in aviation, tyre and paint stocks. Between January 1 and April 30, the Brent Crude changed from $60.75 a barrel to $126 a barrel, a 100-110 per cent rise in prices. During the same time period, the Indian Rupee weakened from 89.96 to 95.01 against each dollar, approximately by 5.61 per cent. The rupee's slide is not just due to oil shock; it had been on a downward trajectory since mid or early 2025, since US President Donald Trump's election to the office and his trade war. For a country like India, which is import-dependent for fertilisers and energy needs and trades mostly in dollars, the Rupee-oil shock means a mounting import bill, a widening of the trade deficit, inflation and potential slowing down of economic growth.

Global oil prices jump above $120 amid US-Iran tensions and Hormuz disruption fears. Here’s what it means for India, markets, and the rupee.

Oil prices cross $120 on Hormuz fears: What it means for India and the Rupee

The Indian rupee hit a historic low on Monday (March 30), breaching the 95 per US dollar mark for the first time, despite recent unconventional measures taken by the Reserve Bank of India (RBI) to curb speculative activity. The currency touched an intra-day low of Rs 95.22.&nbsp;Late on Friday, the RBI directed banks to cap their net open positions at USD 100 million by April 10. While this move initially caused the rupee to rebound to Rs 93.57 in early trade, as banks unwound dollar positions, the gains were quickly erased as large corporations stepped in to buy dollars for hedging and arbitrage.&nbsp;Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.&nbsp;Brent crude prices on Monday climbed 2.5 per cent to approximately $115.50 per barrel, continuing to trade above $100 as the war in West Asia continues to escalate. India, being a major oil importer, is facing immense pressure.&nbsp;Also Read:<a href="https://www.wionews.com/world/7-0-magnitude-earthquake-rocks-vanuatu-islands-south-pacific-no-tsunami-threat-1774865732534"> 7.0-magnitude earthquake rocks Vanuatu Islands, South Pacific, no tsunami threat</a> Foreign Portfolio Investors (FPIs) remain net sellers, with record outflows exceeding Rs 1.18 lakh crore in March 2026 alone.&nbsp;Heightened tensions in West Asia, specifically the ongoing conflict involving Iran, have pushed investors towards safe-haven assets such as the US dollar.&nbsp;The weakness in the rupee has coincided with a sharp decline in equity markets. The Nifty 50 fell around 2% on Monday and is on track for its worst monthly drop since March 2020.The combined impact of a weakening currency, rising oil prices, and global uncertainty has kept overall market sentiment subdued.&nbsp;The rupee has fallen more than 4% so far in March, putting it on course for its worst monthly performance in over seven years.

Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.

The Indian rupee hit a historic low on Monday (March 30), breaching the 95 per US dollar mark for the first time, despite recent unconventional measures taken by the Reserve Bank of India (RBI) to curb speculative activity. The currency touched an intra-day low of Rs 95.22. Late on Friday, the RBI directed banks to cap their net open positions at USD 100 million by April 10. While this move initially caused the rupee to rebound to Rs 93.57 in early trade, as banks unwound dollar positions, the gains were quickly erased as large corporations stepped in to buy dollars for hedging and arbitrage. Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity. Brent crude prices on Monday climbed 2.5 per cent to approximately $115.50 per barrel, continuing to trade above $100 as the war in West Asia continues to escalate. India, being a major oil importer, is facing immense pressure. Also Read: 7.0-magnitude earthquake rocks Vanuatu Islands, South Pacific, no tsunami threat Foreign Portfolio Investors (FPIs) remain net sellers, with record outflows exceeding Rs 1.18 lakh crore in March 2026 alone. Heightened tensions in West Asia, specifically the ongoing conflict involving Iran, have pushed investors towards safe-haven assets such as the US dollar. The weakness in the rupee has coincided with a sharp decline in equity markets. The Nifty 50 fell around 2% on Monday and is on track for its worst monthly drop since March 2020. The combined impact of a weakening currency, rising oil prices, and global uncertainty has kept overall market sentiment subdued. The rupee has fallen more than 4% so far in March, putting it on course for its worst monthly performance in over seven years.

Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.

Indian rupee slides below 95 against dollar for first time amid escalating West Asia conflict

Is the global economy slowly moving away from the dominance of the United States Dollar? The ongoing tensions involving Iran, the United States, and other geopolitical shifts are accelerating discussions around de-dollarisation in global energy trade.

Countries are increasingly settling oil transactions in alternative currencies such as the Chinese Yuan, Russian Ruble, and Indian Rupee. This shift could reshape how global commodities are priced and traded.


US-Iran War: Is The World Moving Away From The Dollar?

The Indian rupee dipped to a record low on Thursday following a fresh surge in crude prices and a strengthening of the US dollar. The currency declined 0.3 per cent to 92.3575 per dollar, surpassing its previous all-time low of 92.3475 recorded earlier in the week.&nbsp;The decline of the rupee came alongside weakness in several other Asian currencies, which also dropped against the greenback. The rupee opened weaker at 92.25 per US dollar in the interbank foreign exchange market and later slipped further to 92.35, compared with its previous closing level of 92.01.&nbsp;Meanwhile, the US Dollar Index, which measures the dollar’s strength against a basket of six major currencies, rose 0.24 per cent to 99.47. A sharp rise in crude oil prices has revived concerns about the economic impact of possible disruptions to global energy supplies.&nbsp;As a major importer of crude oil, India faces the risk of widening twin deficits, the fiscal deficit and the current account deficit, when oil prices climb, adding pressure on the local currency. In the latest developments in the US–Iran conflict, Iran continued its strikes on oil and transport facilities across the Middle East, pushing Brent crude prices to around $100 per barrel. Later, Tehran also warned that global oil prices could potentially rise to $200 per barrel.<h3>Stock Market crashes</h3>The increasing oil prices have heightened inflation concerns and risked several dented investors. Amid the ongoing crisis, the Indian stock market crashed again, after weakness in global equities on Thursday. The benchmark index of BSE Sensex touched 528.47 points, or 0.69 per cent, at 76,335.24, while the NSE Nifty 50 dipped to 171.40 points, or 0.72 per cent, to 23,693.85.&nbsp;Meanwhile, the USD/INR pair is currently trading around the 92.00–92.50 zone, marking mounting pressure on the Indian rupee. “The chart structure remains bullish, supported by an upward trend and a pattern of higher highs and higher lows in recent months. A sustained move above 92.30 could strengthen bullish momentum toward fresh record highs. On the downside, 91.80 – 91.60 acts as immediate support, and a break below this zone may trigger short-term profit booking, although the broader bias remains positive amid global uncertainties,” said Ponmudi R, CEO of Enrich Money. &nbsp;Also read: <a href="https://www.wionews.com/world/down-by-8-million-barrels-a-day-iea-issues-ominous-warning-on-oil-supplies-amid-iran-war-hours-after-largest-ever-stock-release-iran-israel-us-war-1773308810190">Down by 8 million barrels a day: IEA issues ominous warning on oil supplies amid Iran war, hours after largest ever stock release</a>

The rupee opened weaker at 92.25 per US dollar in the interbank foreign exchange market and later slipped further to 92.35, compared with its previous closing level of 92.01.

The Indian rupee dipped to a record low on Thursday following a fresh surge in crude prices and a strengthening of the US dollar. The currency declined 0.3 per cent to 92.3575 per dollar, surpassing its previous all-time low of 92.3475 recorded earlier in the week. The decline of the rupee came alongside weakness in several other Asian currencies, which also dropped against the greenback. The rupee opened weaker at 92.25 per US dollar in the interbank foreign exchange market and later slipped further to 92.35, compared with its previous closing level of 92.01. Meanwhile, the US Dollar Index, which measures the dollar’s strength against a basket of six major currencies, rose 0.24 per cent to 99.47. A sharp rise in crude oil prices has revived concerns about the economic impact of possible disruptions to global energy supplies. As a major importer of crude oil, India faces the risk of widening twin deficits, the fiscal deficit and the current account deficit, when oil prices climb, adding pressure on the local currency. In the latest developments in the US–Iran conflict, Iran continued its strikes on oil and transport facilities across the Middle East, pushing Brent crude prices to around $100 per barrel. Later, Tehran also warned that global oil prices could potentially rise to $200 per barrel. Stock Market crashes The increasing oil prices have heightened inflation concerns and risked several dented investors. Amid the ongoing crisis, the Indian stock market crashed again, after weakness in global equities on Thursday. The benchmark index of BSE Sensex touched 528.47 points, or 0.69 per cent, at 76,335.24, while the NSE Nifty 50 dipped to 171.40 points, or 0.72 per cent, to 23,693.85. Meanwhile, the USD/INR pair is currently trading around the 92.00–92.50 zone, marking mounting pressure on the Indian rupee. “The chart structure remains bullish, supported by an upward trend and a pattern of higher highs and higher lows in recent months. A sustained move above 92.30 could strengthen bullish momentum toward fresh record highs. On the downside, 91.80 – 91.60 acts as immediate support, and a break below this zone may trigger short-term profit booking, although the broader bias remains positive amid global uncertainties,” said Ponmudi R, CEO of Enrich Money. Also read: Down by 8 million barrels a day: IEA issues ominous warning on oil supplies amid Iran war, hours after largest ever stock release

The rupee opened weaker at 92.25 per US dollar in the interbank foreign exchange market and later slipped further to 92.35, compared with its previous closing level of 92.01.

Indian rupee slides to record low of 92.35 per dollar amid Iran war: More details inside

The Indian rupee emerged as the best-performing Asian currency on Tuesday (February 3, 2026), registering a gain of 122 paise or 1.33% in a single trading session to settle at 90.27 (provisional) against the U.S. dollar, after India and the U.S. agreed to a trade deal.


Indian Rupee Down After Rallying Over 1% Against the Dollar

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong.&nbsp;Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported.&nbsp;Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.&nbsp;"I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows."<h3>Inflows of FDI</h3>Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested."&nbsp;She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)."&nbsp;Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses."&nbsp;Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment.&nbsp;Also read: <a href="https://www.wionews.com/world/pm-modi-thanks-trump-as-us-tariffs-on-indian-exports-come-down-from-50-to-18-1770057507354">PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%</a>

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong. Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported. Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds. "I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows." Inflows of FDI Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested." She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)." Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses." Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment. Also read: PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Is rupee making comeback? Economist sees support from India–US trade and portfolio inflows

The rupee strengthened to 1.2% to 90.40 per dollar in early trading today as India's financial markets surged following a new trade agreement that reduced US tariffs on Indian goods from 50% to 18%. 


The Indian Rupee Gains Over 1%  Against the US Dollar 

The nifty and the sensex trade close to five percent lower from their recent highs. A new report by kotak equities tracks the risk and reward for retail investors over the past 16-18 months.


Indian Rupee Slide Eats Into Equity Returns for Retail Investors

The Indian rupee plunged to a record low on Monday (Dec 15) against the US dollar as the uncertainty looms over the India-US trade deal after several rounds of negotiation between both sides and sustained outflow of foreign capital. The rupee slipped 0.2 per cent to touch an all-time low of 90.71, surpassing the previous record of 90.49 on Friday.&nbsp;The Indian currency emerged as Asia's worst performer this year, having declined by nearly 6% year-to-date against the Dollar due to high US tariffs up to 50 per cent on Indian goods to its biggest export destinations and persistent foreign equity outflow.&nbsp;According to the forex traders, the rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.&nbsp;Foreign investors turned net sellers this year as they have sold Indian stocks worth more than $18 billion so far in 2025, making India one of the worst-hit markets in terms of portfolio outflows. Foreign investors offloaded bonds worth $500 million in December this year.&nbsp;Also Read: <a href="https://www.wionews.com/trending/-china-s-first-father-dreams-of-marrying-his-100-us-born-children-into-elon-musk-s-family-faimly-legacy-tesla-china-1765799327664">'China’s first father’ dreams of marrying his 100+ US-born children into Elon Musk’s family</a>&nbsp;Earlier in the day, Commerce Secretary Rajesh Agrawal said that the government is "very close" to finalising the initial framework deal with the US to lower reciprocal tariffs.&nbsp;"We are very close on closing the initial framework deal, but I don't want to put a timeline on it," Agrawal said during a briefing.&nbsp;Also Read: <a href="https://www.wionews.com/world/-stay-indoors-singapore-advises-its-nationals-amid-delhi-air-pollution-crisis-air-quality-delhi-ncr-rekha-gupta-pm-modi-india-1765794337239">Delhi air crisis: Multiple nations including UK, Canada issue advisory as AQI remains in ‘severe’ category</a>&nbsp;"We have done six rounds of talks with the US, where we have discussed both the BTA (Bilateral Trade Agreement) as well as an interim deal to lower reciprocal tariffs," he added.

The rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.

The Indian rupee plunged to a record low on Monday (Dec 15) against the US dollar as the uncertainty looms over the India-US trade deal after several rounds of negotiation between both sides and sustained outflow of foreign capital. The rupee slipped 0.2 per cent to touch an all-time low of 90.71, surpassing the previous record of 90.49 on Friday. The Indian currency emerged as Asia's worst performer this year, having declined by nearly 6% year-to-date against the Dollar due to high US tariffs up to 50 per cent on Indian goods to its biggest export destinations and persistent foreign equity outflow. According to the forex traders, the rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach. Foreign investors turned net sellers this year as they have sold Indian stocks worth more than $18 billion so far in 2025, making India one of the worst-hit markets in terms of portfolio outflows. Foreign investors offloaded bonds worth $500 million in December this year. Also Read: 'China’s first father’ dreams of marrying his 100+ US-born children into Elon Musk’s family Earlier in the day, Commerce Secretary Rajesh Agrawal said that the government is "very close" to finalising the initial framework deal with the US to lower reciprocal tariffs. "We are very close on closing the initial framework deal, but I don't want to put a timeline on it," Agrawal said during a briefing. Also Read: Delhi air crisis: Multiple nations including UK, Canada issue advisory as AQI remains in ‘severe’ category "We have done six rounds of talks with the US, where we have discussed both the BTA (Bilateral Trade Agreement) as well as an interim deal to lower reciprocal tariffs," he added.

The rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.

Indian rupee slips to all-time low of 90.72 against US dollar

A cautious mood in indian markets is back, with benchmark stocks marking a second straight weekly loss after hitting all-time highs. The rupee crashed to a record low for the second straight session on friday.


Rupee Crashes to Record Low for Second Straight Session

The Indian Rupee has breached the 90-per-USD mark as economic pressures mount, signaling challenges for trade, imports, and inflation in India.
This video analyzes the reasons behind the currency’s decline, its impact on businesses and consumers, and expert insights into potential government responses.

Indian Rupee Falls Below 90/USD Amid Rising Economic Pressures

The Indian rupee fell to a record low against the U.S. dollar, raising concerns over inflation, import costs, and economic stability. Analysts cite global market pressures and domestic factors as key drivers of the currency slump.

Indian Rupee Slides to a Record Low Against the US Dollar

The Indian rupee has crashed to a lifetime low, sliding past the 89.5 mark against the U.S. dollar. The decline has been fuelled by subdued risk appetite and uncertainty surrounding the U.S.–India trade impasse. With this sharp fall, the rupee now stands among the weakest major Asian currencies.

Indian Rupee Crashes to All-Time Low, Steepest Drop in Over 3 Months

Despite its modest size, Kuwait boasts the world's most valuable currency, the Kuwaiti Dinar (KWD), with an exchange rate of approximately 1 KWD = 3.26 USD.

Despite its modest size, Kuwait boasts the world's most valuable currency, the Kuwaiti Dinar (KWD), with an exchange rate of approximately 1 KWD = 3.26 USD.

How did a Gulf nation barely bigger than Nagaland build the world’s most powerful currency?

Investors, traders, and policymakers alike watch these rankings closely, as currency strength influences everything from imports and exports to foreign investment flows.

Investors, traders, and policymakers alike watch these rankings closely, as currency strength influences everything from imports and exports to foreign investment flows.

Top 10 highest currencies in the world in 2025: Where does the Indian rupee stand?

The Indian rupee slid to a record low of ₹88.36 per US dollar this week amid fears of new US tariffs and global economic uncertainties. The Reserve Bank of India, the nation's central bank, reportedly intervened to cap further losses. On August 29, the rupee breached the ₹88 mark, touching ₹88.29. These are among the weakest points for the rupee in recent memory, but one group will benefit: Indian expats sending money home.<h2>India is the largest recipient of global remittances</h2>In the fiscal year 2024–25, India received a record high of $135.46 billion in inward remittances. That marks a steady growth. In 2024, remittance inflows climbed to around $129 billion, according to the World Bank, up from an estimated $125 billion in 2023. The figure was about $111 billion in 2022.Also read: <a href="https://www.wionews.com/india-news/indian-tourists-can-pay-in-indian-rupees-with-local-currency-settlement-agreement-says-maldives-finance-minister-moosa-zameer-1753778762423">Indian tourists can pay in Indian Rupees with local currency settlement agreement, says Maldives Finance Minister Moosa Zameer</a><h2>Why a weaker rupee is a boon for NRIs sending money home</h2>A weaker rupee benefits Indian expatriates by enabling them to convert every dollar, or other foreign currency, into more rupees, increasing the value of their remittances. For example, at ₹88 to a dollar, $1,000 becomes ₹88,000 instead of, say, ₹82,000 — a gain of ₹6,000.This gives greater purchasing power to the recipients of these remittances. Whether for household needs, education, investment, or savings, they gain more value.So, the drop in the rupee rate, driven by US tariff concerns and foreign exchange volatility, is in a way helping this segment of Indian society.<a href="https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed">https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed</a><h2>Who is sending money to India? Origins and destinations</h2>The United States is the key source country in terms of value of remittances, accounting for around 27.7 per cent of total flows. The UAE (19.2 per cent) and the UK (10.8 per cent) are also among the top countries. Remittances of about ₹500,000 account for 28.6 per cent of the total inflows. Smaller transactions — ₹16,500 or less — make up 40.6 per cent.States with high remittance inflows include Maharashtra (20.5 per cent), Kerala (19.7 per cent), and Tamil Nadu (10.4 per cent).Also read: <a href="https://www.wionews.com/business-economy/indo-pak-war-indian-rupee-slides-to-record-lows-falls-to-8588-against-dollar-sharpest-drop-in-over-25-years-9051844">Indo-Pak war: Indian Rupee slides to record lows; falls to 85.88 against dollar, sharpest drop in over 2.5 years</a><h2>Indian rupee fall trends and effect on remittances</h2>The rupee has been falling in recent months, dropping to ₹87.29 per US dollar in February. Historically, a weaker rupee always encouraged NRIs to remit money more frequently and in larger amounts. The 2018 rupee depreciation to 69.62 per US dollar caused a 25 per cent volume spike in remittances from the UAE.The current depreciation — around 3.6 per cent over 10 months — is showing a similar effect, particularly among skilled migrants in high-income countries.<h2>Easier now to send remittances, but challenges remain</h2>Digital infrastructure for sending money, including platforms like UPI, has improved the remittance process by reducing costs, increasing transaction speed and boosting volumes.But challenges remain. Any global slowdown, or headwinds like falling oil prices and economic uncertainties, could impact remittance inflows. There is also the risk of countries changing their visa and immigration policies, which could affect future remittance volumes.

The rupee’s fall to record lows against the dollar is boosting remittances from Non-Resident Indians (NRIs). This is good for the economy as the recipients get more purchasing power to buy goods and services, boosting demand and economic activity

The Indian rupee slid to a record low of ₹88.36 per US dollar this week amid fears of new US tariffs and global economic uncertainties. The Reserve Bank of India, the nation's central bank, reportedly intervened to cap further losses. On August 29, the rupee breached the ₹88 mark, touching ₹88.29. These are among the weakest points for the rupee in recent memory, but one group will benefit: Indian expats sending money home. India is the largest recipient of global remittances In the fiscal year 2024–25, India received a record high of $135.46 billion in inward remittances. That marks a steady growth. In 2024, remittance inflows climbed to around $129 billion, according to the World Bank, up from an estimated $125 billion in 2023. The figure was about $111 billion in 2022. Also read: Indian tourists can pay in Indian Rupees with local currency settlement agreement, says Maldives Finance Minister Moosa Zameer Why a weaker rupee is a boon for NRIs sending money home A weaker rupee benefits Indian expatriates by enabling them to convert every dollar, or other foreign currency, into more rupees, increasing the value of their remittances. For example, at ₹88 to a dollar, $1,000 becomes ₹88,000 instead of, say, ₹82,000 — a gain of ₹6,000. This gives greater purchasing power to the recipients of these remittances. Whether for household needs, education, investment, or savings, they gain more value. So, the drop in the rupee rate, driven by US tariff concerns and foreign exchange volatility, is in a way helping this segment of Indian society. https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed Who is sending money to India? Origins and destinations The United States is the key source country in terms of value of remittances, accounting for around 27.7 per cent of total flows. The UAE (19.2 per cent) and the UK (10.8 per cent) are also among the top countries. Remittances of about ₹500,000 account for 28.6 per cent of the total inflows. Smaller transactions — ₹16,500 or less — make up 40.6 per cent. States with high remittance inflows include Maharashtra (20.5 per cent), Kerala (19.7 per cent), and Tamil Nadu (10.4 per cent). Also read: Indo-Pak war: Indian Rupee slides to record lows; falls to 85.88 against dollar, sharpest drop in over 2.5 years Indian rupee fall trends and effect on remittances The rupee has been falling in recent months, dropping to ₹87.29 per US dollar in February. Historically, a weaker rupee always encouraged NRIs to remit money more frequently and in larger amounts. The 2018 rupee depreciation to 69.62 per US dollar caused a 25 per cent volume spike in remittances from the UAE. The current depreciation — around 3.6 per cent over 10 months — is showing a similar effect, particularly among skilled migrants in high-income countries. Easier now to send remittances, but challenges remain Digital infrastructure for sending money, including platforms like UPI, has improved the remittance process by reducing costs, increasing transaction speed and boosting volumes. But challenges remain. Any global slowdown, or headwinds like falling oil prices and economic uncertainties, could impact remittance inflows. There is also the risk of countries changing their visa and immigration policies, which could affect future remittance volumes.

The rupee’s fall to record lows against the dollar is boosting remittances from Non-Resident Indians (NRIs). This is good for the economy as the recipients get more purchasing power to buy goods and services, boosting demand and economic activity

Rupee fall is a boon for Indian expats who send money home. Here is why it matters for largest remittance-receiving nation

The Indian Rupee made a significant comeback to mark its best week in 19 months after falling to a record low. The currency was lifted by the central bank's heavy intervention in the foreign exchange market and kept speculators betting against the currency at bay.<o:p></o:p>
The&nbsp;Rupee&nbsp;closed out the week 0.1 per cent higher at 86.82 against the dollar. For the week, it gained 0.7 per cent, the most since mid-July of 2023. This comes after the currency fell to a new all-time low of 87.95 on Monday.<o:p></o:p>
Slowing economic growth in India, the Reserve Bank of India&rsquo;s (RBI) rate cut last week, foreign investor exodus from domestic stocks, and fears of a global trade war in response to Trump's tariff measures have put pressure on the&nbsp;Rupee.<o:p></o:p>
<h2 class="MsoNormal">Rupee&nbsp;recovers sharply from record low<o:p></o:p></h2>
After the currency fell to a new life low, the RBI sold dollars in the foreign exchange market on Monday, limiting the&nbsp;Rupee's decline.<o:p></o:p>
The central bank reportedly intervened significantly again on Tuesday. The&nbsp;Rupee&nbsp;is expected to trade within the 86.60 to 87.20 range in the near term. The RBI burning through its forex reserves has raised some concerns.<o:p></o:p>
However, analysts gave a thumbs up to the central bank for intervening to stabilise the currency. Broad expectations were that the rbi would start limiting its intervention and start building on the forex reserves.<o:p></o:p>
The latest data shows India&rsquo;s import cover risen for the third consecutive week after having fallen for four months. Before the current positive run, the country's forex reserves had fallen in 15 of the 16 weeks, hitting an about 11-month low.<o:p></o:p>
India's import cover has fallen about 65 billion dollars since hitting a record high of about 705 billion dollars in September. Currently, India&rsquo;s forex war chest is sufficient to cover about 11 months of projected imports.<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: The Indian Rupee made a significant comeback to mark its best week in 19 months after falling to a record low. The Rupee closed out the week 0.1 per cent higher at 86.82 against the dollar.

The Indian Rupee made a significant comeback to mark its best week in 19 months after falling to a record low. The currency was lifted by the central bank's heavy intervention in the foreign exchange market and kept speculators betting against the currency at bay. The Rupee closed out the week 0.1 per cent higher at 86.82 against the dollar. For the week, it gained 0.7 per cent, the most since mid-July of 2023. This comes after the currency fell to a new all-time low of 87.95 on Monday. Slowing economic growth in India, the Reserve Bank of India’s (RBI) rate cut last week, foreign investor exodus from domestic stocks, and fears of a global trade war in response to Trump's tariff measures have put pressure on the Rupee. Rupee recovers sharply from record low After the currency fell to a new life low, the RBI sold dollars in the foreign exchange market on Monday, limiting the Rupee's decline. The central bank reportedly intervened significantly again on Tuesday. The Rupee is expected to trade within the 86.60 to 87.20 range in the near term. The RBI burning through its forex reserves has raised some concerns. However, analysts gave a thumbs up to the central bank for intervening to stabilise the currency. Broad expectations were that the rbi would start limiting its intervention and start building on the forex reserves. The latest data shows India’s import cover risen for the third consecutive week after having fallen for four months. Before the current positive run, the country's forex reserves had fallen in 15 of the 16 weeks, hitting an about 11-month low. India's import cover has fallen about 65 billion dollars since hitting a record high of about 705 billion dollars in September. Currently, India’s forex war chest is sufficient to cover about 11 months of projected imports. (With inputs from the agencies)

Indian Rupee marks best week in 19 months

The Indian rupee made a significant comeback to mark its best week in 19 months after falling to a record low. The currency was lifted by the central bank's heavy intervention in the foreign exchange market, keeping speculators betting against the rupee at bay. Watch in for more details!

Heavy RBI intervention helps record low rupee

The Indian rupee has staged a remarkable comeback after hitting an all-time low, thanks to RBI’s strategic intervention. Despite global economic risks and stock market chaos, the currency’s rebound has surprised analysts and investors alike.

Rupee recovers amidst stock market chaos

Rupee stages its strongest comeback in nearly two years

In a dramatic turnaround, the rupee staged its strongest comeback in nearly two years. <o:p></o:p>The currency gained about 1.5 per cent from its all-time low hit on Monday. <o:p></o:p>This comes despite a deep crash in Indian stocks, which extended to Wednesday.<o:p></o:p>
The significant rise in the rupee was propelled by the Reserve Bank of India's aggressive intervention. <o:p></o:p>Reports show the central bank sold about 5 billion dollars via state-owned banks to stabilise the currency. <o:p></o:p>The RBI's action was a direct reaction to the currency's recent turmoil.<o:p></o:p>
The rupee crashed to reach a record low of 87.95 versus the US dollar on Monday, sending shockwaves through the market. <o:p></o:p>The RBI's action triggered a sharp reversal, creating a domino effect that boosted the currency's recovery. <o:p></o:p>However, the RBI burning through its forex reserves to support the rupee is raising some concerns.<o:p></o:p>
While India's forex reserves are still healthy at about 631 billion dollars, the 10-month worth of import cover has fallen over 70 billion dollars since a record high of around 705 billion dollars in September last year. <o:p></o:p>India's forex war chest is well above the average of about 300 billion dollars between 1998 and 2025.<o:p></o:p>
<h2 class="MsoNormal">Rupee recovers amid stock market chaos<o:p></o:p></h2>
Still, the risks are of more foreign outflows amid an escalating trade war hurting the country's import cover. <o:p></o:p>What is also worrying is the deep sell-off in Indian stocks, with benchmark stock indices extending their massive losses for the sixth straight session.<o:p></o:p>
The Sensex crashed over 700 points to fall below the 76,000 points mark. <o:p></o:p>The broader Nifty index also was in the red. <o:p></o:p>The selloff has already erased over 9 trillion rupees in investor wealth. <o:p></o:p>This was prompted by the withdrawal of foreign institutional investors and increasing global tensions.<o:p></o:p>
The decision by US President Donald Trump to impose a 25 per cent tax on steel and aluminium imports, together with threats of retaliatory tariffs, caused significant disruption in global markets. <o:p></o:p>The turmoil in Indian stocks comes despite a pullback in global markets.<o:p></o:p>
Asian and European stocks showed glimpses of a reversal to gains, suggesting traders are starting to feel numb on the trade war headlines. <o:p></o:p>Wall Street futures, though, pointed to a mixed open, similar to Tuesday's close.
<o:p></o:p>The comments from Federal Reserve's Chief Jerome Powell that the central bank is in no rush to cut rates weigh on sentiment. <o:p></o:p>Fed chief's remarks also showed inflation concerns from the ongoing trade war. So, ahead of key US inflation data, investors remained on the sidelines.<o:p></o:p>
(With the inputs from the agencies)<o:p></o:p>

Business & Economy: In a dramatic turnaround, the rupee staged its strongest comeback in nearly two years. The currency gained about 1.5 per cent from its all-time low hit on Monday.

In a dramatic turnaround, the rupee staged its strongest comeback in nearly two years. The currency gained about 1.5 per cent from its all-time low hit on Monday. This comes despite a deep crash in Indian stocks, which extended to Wednesday. The significant rise in the rupee was propelled by the Reserve Bank of India's aggressive intervention. Reports show the central bank sold about 5 billion dollars via state-owned banks to stabilise the currency. The RBI's action was a direct reaction to the currency's recent turmoil. The rupee crashed to reach a record low of 87.95 versus the US dollar on Monday, sending shockwaves through the market. The RBI's action triggered a sharp reversal, creating a domino effect that boosted the currency's recovery. However, the RBI burning through its forex reserves to support the rupee is raising some concerns. While India's forex reserves are still healthy at about 631 billion dollars, the 10-month worth of import cover has fallen over 70 billion dollars since a record high of around 705 billion dollars in September last year. India's forex war chest is well above the average of about 300 billion dollars between 1998 and 2025. Rupee recovers amid stock market chaos Still, the risks are of more foreign outflows amid an escalating trade war hurting the country's import cover. What is also worrying is the deep sell-off in Indian stocks, with benchmark stock indices extending their massive losses for the sixth straight session. The Sensex crashed over 700 points to fall below the 76,000 points mark. The broader Nifty index also was in the red. The selloff has already erased over 9 trillion rupees in investor wealth. This was prompted by the withdrawal of foreign institutional investors and increasing global tensions. The decision by US President Donald Trump to impose a 25 per cent tax on steel and aluminium imports, together with threats of retaliatory tariffs, caused significant disruption in global markets. The turmoil in Indian stocks comes despite a pullback in global markets. Asian and European stocks showed glimpses of a reversal to gains, suggesting traders are starting to feel numb on the trade war headlines. Wall Street futures, though, pointed to a mixed open, similar to Tuesday's close. The comments from Federal Reserve's Chief Jerome Powell that the central bank is in no rush to cut rates weigh on sentiment. Fed chief's remarks also showed inflation concerns from the ongoing trade war. So, ahead of key US inflation data, investors remained on the sidelines. (With the inputs from the agencies)

Rupee stages epic comeback despite stocks crash

The Indian rupee is set to become more volatile as the Reserve Bank of India’s new governor loosens control over the partially convertible currency as a rampant US dollar exerts relentless downward pressure, a Reuters poll found.

Rupee set for volatile ride as RBI eases control

The Rupee Has Steadily Declined To Several Record Lows Repeatedly In Recent Weeks,... Continuing Its Significant Decline This Year.// This Comes Even As The International Monetary Fund Called The Indian Economy "A Shining Star"... And Bets On The Country's Growth Story Have Risen.//

Indian Rupee Hits New Lows This Week

The rupee fell 5 paise to an all-time low of 84.37 against the US dollar in early trade on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.

Forex traders said the US Federal Reserve’s recent decision to cut interest rates signals a shift in the global financial landscape. Moreover, with Donald Trump’s tax and trade policies influencing global markets, volatility could re-enter the rupee’s trajectory.

At the interbank foreign exchange, the rupee opened at 84.32 against the greenback, then it fell further to an all-time low of 84.37, registering a rise of 5 paise over its previous close.

On Thursday, the rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar.

“The spotlight will now be on the Reserve Bank of India (RBI) and how effectively it navigates this shifting currency landscape. In such a dynamic environment, only those who adapt swiftly will thrive in the market ahead,” CR Forex Advisors Managing Director Amit Pabari said.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/indian-supreme-court-rules-aligarh-muslim-university-is-entitled-to-minority-status-774537">Aligarh Muslim University's minority status to be decided by...: Indian SC</a>

In its latest monetary policy announcement, the US Fed reduced its benchmark rate by 0.25 basis points to a target range of 4.5 per cent-4.75 per cent.

In its accompanying statement, the Fed adopted a neutral-to-dovish tone, acknowledging balanced risks in inflation and employment.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally higher by 0.02 per cent at 104.53.

Brent crude, the global oil benchmark, fell 0.65 per cent to USD 75.14 per barrel in futures trade.

“In this dynamic environment, volatility in the USD/INR pair is expected, with the RBI likely maintaining a range between 83.80 and 84.50. If the dollar’s momentum stalls amid future Fed rate cuts and weakening investor confidence, the rupee could gradually strengthen toward the lower end of this range,” Pabari said.

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On the domestic equity market front, Sensex declined 14.23 points, or 0.02 per cent, to 79,527.56 points. The Nifty fell 15.45 points, or 0.06 per cent, to 24,183.90 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,888.77 crore, according to exchange data.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The rupee fell 5 paise to an all-time low of 84.37 against the US dollar in early trade on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.

The rupee fell 5 paise to an all-time low of 84.37 against the US dollar in early trade on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities. Forex traders said the US Federal Reserve’s recent decision to cut interest rates signals a shift in the global financial landscape. Moreover, with Donald Trump’s tax and trade policies influencing global markets, volatility could re-enter the rupee’s trajectory. At the interbank foreign exchange, the rupee opened at 84.32 against the greenback, then it fell further to an all-time low of 84.37, registering a rise of 5 paise over its previous close. On Thursday, the rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar. “The spotlight will now be on the Reserve Bank of India (RBI) and how effectively it navigates this shifting currency landscape. In such a dynamic environment, only those who adapt swiftly will thrive in the market ahead,” CR Forex Advisors Managing Director Amit Pabari said. Also read: Aligarh Muslim University's minority status to be decided by...: Indian SC In its latest monetary policy announcement, the US Fed reduced its benchmark rate by 0.25 basis points to a target range of 4.5 per cent-4.75 per cent. In its accompanying statement, the Fed adopted a neutral-to-dovish tone, acknowledging balanced risks in inflation and employment. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally higher by 0.02 per cent at 104.53. Brent crude, the global oil benchmark, fell 0.65 per cent to USD 75.14 per barrel in futures trade. “In this dynamic environment, volatility in the USD/INR pair is expected, with the RBI likely maintaining a range between 83.80 and 84.50. If the dollar’s momentum stalls amid future Fed rate cuts and weakening investor confidence, the rupee could gradually strengthen toward the lower end of this range,” Pabari said. Also read: Nvidia surpasses $3.6 trillion market value after Trump election victory On the domestic equity market front, Sensex declined 14.23 points, or 0.02 per cent, to 79,527.56 points. The Nifty fell 15.45 points, or 0.06 per cent, to 24,183.90 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,888.77 crore, according to exchange data. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Rupee falls 5 paise, hits record low of 84.37 against US dollar

The rupee has fallen from being the best-performing currency in developing Asia at the beginning of the year to the worst-performing since July...And it seems probable that this loss will continue. Can rupee stage a comeback?

Rupee at record lows weaken outlook further

Indian stocks were volatile, and the rupee fell to a new record low against a burgeoning dollar, as finance minister Nirmala Sitharaman unveiled the budget 2024-25. Benchmark indices had surged to multiple record highs in the run-up to the budget.&nbsp;

Traders had positioned for broader reforms in taxes. However, stocks and rupee tanked on Tuesday after budget announcements, which included an increase in capital gains tax and new levy on derivatives trading.&nbsp;

The rupee fell to 83.69 against the dollar, inching past the previous lifetime low of 83.6775 and compared with 83.6275 before the budget announcement. The currency has been weighed lower by a stronger dollar in a broad emerging market hit. While the Reserve Bank of India has intervened in markets to stem significant moves in the rupee, the currency has tested several record lows over the past month.&nbsp;

The US federal reserve's decision to delay the start of its rate cut cycle has hurt global currencies, with emerging markets taking a bigger hit.&nbsp;

The blue-chip Sensex index fell as much as 1,500 points at one point. The index was last trading below the 80,000 level for the first time since June 12th, down about 600 points. The broader nifty index also crashed after starting the day with gains. It came within a whisker of falling below the 24,00 points mark and was last down by over 0.7 per cent. Investors have broadly given a thumbs down to the budget.&nbsp;

Indian stocks were volatile, and the rupee fell to a new record low against a burgeoning dollar, as finance minister Nirmala Sitharaman unveiled the budget 2024-25.

Indian stocks were volatile, and the rupee fell to a new record low against a burgeoning dollar, as finance minister Nirmala Sitharaman unveiled the budget 2024-25. Benchmark indices had surged to multiple record highs in the run-up to the budget. Traders had positioned for broader reforms in taxes. However, stocks and rupee tanked on Tuesday after budget announcements, which included an increase in capital gains tax and new levy on derivatives trading. The rupee fell to 83.69 against the dollar, inching past the previous lifetime low of 83.6775 and compared with 83.6275 before the budget announcement. The currency has been weighed lower by a stronger dollar in a broad emerging market hit. While the Reserve Bank of India has intervened in markets to stem significant moves in the rupee, the currency has tested several record lows over the past month. The US federal reserve's decision to delay the start of its rate cut cycle has hurt global currencies, with emerging markets taking a bigger hit. The blue-chip Sensex index fell as much as 1,500 points at one point. The index was last trading below the 80,000 level for the first time since June 12th, down about 600 points. The broader nifty index also crashed after starting the day with gains. It came within a whisker of falling below the 24,00 points mark and was last down by over 0.7 per cent. Investors have broadly given a thumbs down to the budget.

India budget 2024: Stocks volatile, currency crashes

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