Athira Sethu
Kochi, 9 Mar 2026
Indian rupee touched all time low of 92.58 against US dollar intraday after crude oil prices surged. Brent crude jumped over 25% to touch $118 per barrel in futures trade because the conflict involving Iran got worse, with fuel-related sites being attacked.
The rupee was trading at 92.21 against the US dollar, down from 91.74 at the end of the previous day. Last week, it had already fallen to a record low of 92.31, so it is hovering near that weak level.
The ongoing conflict between the US, Israel, and Iran is now in its second week and shows no signs of slowing down. Even critical sites like desalination plants and fuel facilities are being targeted. The worsening situation has shaken global markets, and energy prices have been rising almost every day, raising fears of an oil price shock. Brent crude oil has increased by more than 25 percent since the start of the month.
Rising oil prices are bad news for India, which imports over 85 percent of its energy. Higher oil costs can increase India’s current account deficit, putting extra pressure on the rupee.
To try and stabilize the currency, the Reserve Bank of India (RBI) has been selling its foreign currency reserves. Traders report that the central bank sold nearly $12 billion last week to reduce volatility and support the rupee.
Analysts warn that the rupee will continue to be vulnerable as oil prices stay high. Since Brent crude has risen over 28 percent since Friday, the rupee could weaken further. Experts at Finrex Treasury Advisors predict that if oil remains above $100 per barrel, the rupee might drop to 93 against the US dollar in the next few trading days.
Overall, the combination of rising oil prices and the intensifying conflict in the Middle East is creating pressure on India’s currency and the economy. Investors and businesses are closely watching the situation, as global energy costs continue to climb and uncertainty in the region shows no sign of easing.
