Mumbai, India – March 20, 2026
Rupee All-Time Low: The Indian rupee weakened sharply in early Friday trade, hitting a record intraday low of 93.08 against the US dollar, pressured by a strong greenback and sustained foreign fund outflows.
In the interbank forex market, the rupee opened at 92.92 per dollar before sliding further to breach the 93 mark for the first time, marking a decline of 19 paise compared to the previous close.
Continued Weakness in Forex Market
The latest drop follows Wednesday’s sharp fall, when the rupee had already closed at a record low of 92.89, down 49 paise. The ongoing trend highlights persistent pressure on the domestic currency.
Key Reasons Behind the Rupee Fall
According to forex traders, several factors are contributing to the depreciation:
Strong US Dollar: The dollar index rose by 0.17% to 100.25, reflecting global strength of the US currency
FII Selling Pressure: Foreign institutional investors (FIIs) have continued heavy selling in Indian equities
Geopolitical Tensions: Ongoing West Asia conflict has impacted investor sentiment
Market Volatility: Global uncertainty is driving capital outflows from emerging markets
Impact of FII Outflows
Exchange data shows that foreign institutional investors sold equities worth ₹7,558.19 crore on a net basis on Thursday, adding pressure on the rupee.
Oil Prices and Market Movement
Global crude oil prices showed some relief, with Brent crude falling 1.64% to $106.9 per barrel, which could help limit further downside in the rupee.
Meanwhile, domestic equity markets staged a recovery after recent losses. The Sensex rose 960.67 points (1.29%) to 75,167.91, while the Nifty gained 311.50 points (1.35%) to 23,313.65.
Mixed Signals for Currency Outlook
While the rebound in equity markets provided some support, analysts note that continued dollar strength and foreign capital outflows may keep the rupee under pressure in the near term.
