The Indian rupee weakened further to breach 94 and approach 95 against the US dollar—a new record low—following its prior plunge to 93.73 last week. Surging crude oil prices from Red Sea tensions and fears of a prolonged Gulf war drove the slide, while Indian stocks extended losses into a fifth consecutive week. Limited Reserve Bank of India intervention has heightened concerns of additional depreciation.
Continuing its downward trajectory—after hitting 93.73 per USD around March 21 amid West Asian conflicts—the Indian rupee crossed the 94 mark and neared 95 on Friday, March 27, marking another historic low. Escalating tensions in the Red Sea region have spiked crude oil prices, raising alarms over potential disruptions through the Strait of Hormuz and a drawn-out Gulf war. Traders noted subdued RBI intervention, allowing the depreciation to accelerate. Benchmark indices NSE Nifty and BSE Sensex saw broad sell-offs, prolonging equity losses into a fifth straight week amid investor jitters over India's oil import reliance. Analysts warn that sustained conflict could push the rupee toward 95 or beyond without robust policy measures, underscoring emerging markets' vulnerability to global energy and geopolitical shocks.
