Rupee tanked 66 paise to record low of 92.15 against the US dollar today, amid soaring oil prices and a retreat from riskier assets like equities in the wake of the U.S. – Iran conflict.

Pressure on Rupee to continue, say analysts

Analysts are of the view that the currency may remain under pressure amid the ongoing tensions in the Middle East. U.S.-Israel led war in the Middle East has sent ripples through out the global markets, strengthening the dollar and providing an upswing to crude oil, which has touched $85 per barrel.

With the developments, India stands the risk of higher imported inflation. This comes at a time when prices have remained largely benign in the domestic economy. It may be noted that Rupee has been losing strength over the last one year due to uncertainties due to trade tariffs. The currency has lost more than 2% this year. It had declined almost 5% in 2025.

The recent understanding on the US-India trade deal gave some respite to the currency as it boosted foreign inflows for some time. However, the resurgence of conflict across the Middle East quickly erased these gains.

Breaching the 92 per dollar level beats estimates, as most of the forex market commentaries predicted a range of 91.10 – 92 per dollar after the outbreak of the Middle East crisis.

“Higher oil prices widen India’s import bill and current account concerns, leading to defensive positioning in the rupee. The positive momentum seen post-budget and after the U.S.–India trade understanding has temporarily faded under global risk-off sentiment,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

After a sharp decline on March 2, Dilip Parmar, senior research analyst, HDFC Securities said, “The currency remains under pressure as investors move toward safe-haven assets, foreign capital outflow from the equities, and fears grow that expensive imports will hurt the trade balance.”