Rupee hits record low at 92.4750 amid oil shock and offshore dollar demand

India’s currency hit a fresh record low on March 13, 2026, as global market pressures intensified. The rupee’s sharp depreciation reflects mounting macroeconomic risks, with traders and policymakers closely watching for further volatility.  

Geopolitical Tensions And Oil Price Surge  
The recent military strikes involving the U.S. and Israel in Iran have disrupted oil supply routes, notably the Strait of Hormuz. This has led to a spike in crude prices, straining India’s import bill and worsening the trade deficit. The rupee’s sensitivity to oil shocks remains a key vulnerability.  

Offshore Dollar Demand And Capital Flows  
Traders cited strong offshore dollar bids as another factor behind the rupee’s slide. Foreign investors have pulled back from Indian equities, with the **Nifty 50 falling 2%** on the same day. The delay in a pending trade deal with the U.S. has further dampened sentiment.  

Currency Market Snapshot  

• Rupee hits record low of 92.4750 per dollar  
• Previous low was 92.3575, breached on March 13  
• Closed at 92.4550, down 0.7% for the week  
• Nifty 50 slips 2% amid investor exits  
• Oil price surge and geopolitical risks drive pressure  

Future Outlook  
Analysts warn that the rupee may weaken further if oil prices remain elevated and geopolitical risks persist. The Reserve Bank of India may intervene to stabilize the currency, but sustained relief will depend on global developments and capital flow recovery.  

Sources: Economic Times, Moneycontrol, MSN