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- Middle East War Fuels Dollar Rise, Oil Surge; Rupee Hits Record Low 92.33
New Delhi2 minutes ago
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The Indian rupee today fell by 46 paise to reach a record low of 92.33 against the US dollar on March 9. Amidst the worsening situation in the Middle East, this huge fall in the rupee has happened due to the huge rise in the prices of crude oil in the global market and the strengthening of the dollar.
Experts say that until the war subsides, pressure on the rupee may remain. The rupee has fallen by more than 2% so far this year. Due to this, it has become one of the worst performing currencies of the world’s emerging markets in 2026.
Crude oil became costlier by 25% in a week
The biggest reason for this record fall in the rupee is the rise in crude oil prices.
- Brent crude reaches $117: Due to increasing tension in the Middle East, the fear of supply stoppage has increased. On Monday, Brent crude rose 25% to near $117 a barrel.
- 50% surge: Since the war with Iran started, oil prices have increased by almost 50%.
- Impact on India: India imports a major part of its needs. Due to oil becoming expensive, refining companies have to pay more dollars, due to which the demand for dollars increased in the market and the rupee became weak.
Rupee opened at 92.19, but fell as soon as trading started
Like last Thursday, the Reserve Bank intervened before the market opened on Monday also. Due to this, the rupee opened at 92.19, which was slightly better than market expectations. But, as soon as trading started, buying of dollars by investors and oil companies intensified.
A currency trader at a bank said, “RBI is giving the message that it is keeping an eye on the market, but considering the current oil situation, it is difficult to push the dollar-rupee pair lower at the moment.”
Dollar becomes ‘safe haven’ for foreign investors
There is an atmosphere of uncertainty in the markets around the world due to the ongoing war in the Middle East. In such a situation, instead of taking risks, investors are investing their money in the US dollar which is considered ‘safe’.
According to a report by BofA Global Research, “If this war prolongs, then the currencies of those countries which are dependent on oil imports will be under the most pressure. India (INR) and Philippines (PHP) are the most sensitive in this.”
The relief received last month ends in the short term
After the trade deal between America and India last month, it seemed that the position of the rupee would improve. At that time, foreign investors had started investing money in the Indian market and the rupee also made a slight recovery, but as the fighting in the Middle East escalated, the relief ended within a few days.
What will be the impact on the common man?
Studying and traveling abroad is expensive: If you are planning to go abroad or someone of yours is studying abroad, you will have to spend more money to buy dollars.
Electronics and Raw Material Prices: Mobiles, laptops and other parts coming from abroad can be expensive because companies pay for them in dollars.
Petrol-Diesel Prices: If crude oil remains expensive like this, then the prices of petrol and diesel may also increase in the country in the coming time.
How is the value of currency determined?
If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. In English it is called currency depreciation.
Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollar in India’s foreign reserves is equal to the rupee reserves of America, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen.
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