The Indian rupee breached the 93-per-dollar mark for the first time on 20 March 2026, reaching a record intra-day low of 93.08 against the US dollar in early trade. The decline was attributed to a combination of a strengthening greenback, persistent foreign institutional investor outflows, and a surge in global crude oil prices. The rupee had previously closed at 92.89 per dollar on 18 March 2026, with forex markets closed on 19 March for Gudhi Padwa.According to The Hindu, the rupee’s fall of 19 paise in early trade was cushioned by a positive opening in domestic equity markets, but elevated oil prices and ongoing geopolitical tensions in West Asia continued to exert downward pressure. The dollar index, which measures the US dollar against a basket of six major currencies, was reported at 100.25, up 0.17%.As reported by Hindustan Times, the rupee opened at 92.92 before breaching the 93 mark. Foreign institutional investors sold equities worth ₹7,558.19 crore on a net basis on 19 March, contributing to the currency’s weakness. The Sensex and Nifty had fallen to a 21-month low before rebounding on 20 March.As highlighted by The Indian Express, the escalation of conflict in West Asia, particularly the Israel-US attacks on Iran and subsequent retaliatory strikes, led to the closure of the Strait of Hormuz and disruptions in global fuel supply. This resulted in a sharp rise in fuel prices, which directly impacted the rupee’s exchange rate. Offshore markets had already seen the rupee cross the 93-per-dollar mark as fuel prices surged following attacks on key energy infrastructure in the region.Mid-paragraph analysis showed that the rupee’s vulnerability was heightened by the Reserve Bank of India’s interventions to stem further depreciation, primarily through selling dollars from its reserves. Brent crude, the global oil benchmark, was trading at $106.9 per barrel, while the RBI’s foreign exchange reserves had declined by $11.68 billion as of 7 March 2026. “The rupee looks vulnerable with the RBI the only one protecting it from further fall by selling dollars,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.Coverage revealed that foreign investors have withdrawn $9.83 billion from Indian financial markets in March 2026 alone, the highest outflow since October 2024. The rupee has depreciated by 3.6% against the US dollar so far in 2026, and by 2.4% since the onset of the West Asia conflict on 28 February.On the domestic front, the Sensex rebounded by 960.67 points to 75,167.91 and the Nifty rose by 311.50 points to 23,313.65 after the previous session’s decline. However, the rupee’s depreciation is expected to complicate the Reserve Bank of India’s upcoming monetary policy decisions, especially with the average price of India’s crude oil basket rising to $114.08 per barrel in March 2026.Further details indicated that the RBI had previously assumed an average exchange rate of 88 per dollar and oil prices at $70 per barrel for the second half of the fiscal year. The recent surge in both metrics has increased concerns about inflation and economic growth.“At a time of global uncertainty, investors tend to cut down on the risks they are exposed to and withdraw from emerging markets, such as India,” the analysis noted.Market observers stated that the rupee’s record low was influenced by a combination of global and domestic factors, including the ongoing conflict in West Asia, rising oil prices, and sustained foreign capital outflows. The RBI’s interventions have provided some support, but the currency remains under pressure as geopolitical and economic uncertainties persist.Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.