New Delhi, March 30: The Indian rupee has crossed the 95 mark against the dollar for the first time, reaching a new low of 95.2 on Monday. However, it closed the day at 94.83, reflecting a 0.3 percent decline from Friday’s close of 94.81.
The rupee has been under consistent pressure against the dollar due to rising tensions in the Middle East. In March alone, the Indian currency has depreciated by 4.4 percent against the US dollar.
Initially, the rupee opened strong after the Reserve Bank of India (RBI) reduced the overnight net open position limit for banks to $100 million. However, it lost its gains during the session, falling by 160 paise from its opening level.
Additionally, the rupee experienced nearly a 1 percent decline last week, marking the fourth consecutive weekly drop, closing at a record low of 94.84 against the dollar.
Following the market closure on Friday, the central bank mandated that banks ensure their net open rupee position does not exceed $100 million by the end of each trading day until April 10.
Estimates suggest that the size of these investments ranges from $25 billion to over $50 billion.
Rising oil prices have also contributed to the decline of the rupee, impacting the Indian stock market. In March 2026, the Nifty index saw a decline of over 10 percent, marking the largest monthly drop since March 2020 during the pandemic.
On the last trading session of the current fiscal year (2025-26), the Indian stock market experienced significant losses. By the end of the day, the Sensex fell by 1,635.67 points or 2.22 percent to 71,947.55, while the Nifty dropped by 488.20 points or 2.14 percent to 22,331.40.
Escalating conflicts in West Asia have also driven global crude oil prices higher. As of Monday, benchmark Brent crude futures rose by 2.11 percent to $115 per barrel, while WTI crude futures increased by 1.75 percent to $101.4 per barrel.
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