Rupee crosses 95 for the first time, becomes Asia’s worst performing currency: Mobile, gold, oil, foreign goods become costlier
Rupee Hit Record Low: Rupee has crossed 95 for the first time against the US dollar today i.e. on March 30. Today the rupee has weakened by 88 paise to 95.58. This decline in the rupee has occurred due to the ongoing war between America and Israel with Iran. The rupee has fallen by about 4% in a month. The rupee has fallen by more than 10% in this financial year. The weakness of the rupee will affect the common man also. Due to this, it will become expensive to buy goods imported from abroad like mobiles, gold-silver, crude oil. This will increase inflation. With this, the rupee has become the worst performing currency of Asia. It has fallen 4.1% against the US dollar (USD) since January 1, 2026.
What is the biggest reason for this historic fall in the rupee?
Answer: The biggest reason for this is the rise in crude oil prices. After Iran’s attacks on the energy bases of Gulf countries, the prices of Brent crude had crossed $ 110 per barrel. India imports 85% of its oil needs, for which we have to pay in dollars. Due to oil becoming expensive, the demand for dollars increased and the rupee became weak.
What is the role of foreign investors (FIIs) in this?
Answer: Foreign portfolio investors have so far withdrawn approximately $ 12.3 billion (about Rs 1.15 lakh crore) from the Indian stock market in the month of March. Due to global uncertainty and fear of war, foreign investors are pulling their money out of emerging markets like India and investing it in safe havens like US bonds. Due to such heavy selling, the pressure on the rupee has increased a lot.
What does the ‘Strait of Hormuz’ tension have to do with the rupee?
Answer: Strait of Hormuz is the sea route through which 20% of the world’s oil and almost half of India’s oil passes. Due to increasing tension between Iran and Israel, there is a fear of supply disruption on this route. Market experts say that until the situation on this sea route becomes clear, the rupee will continue to fluctuate.
What do the experts say?
V.K., Chief Investment Strategist, Geojit Investments. Vijayakumar said, ‘Even though the RBI directive will stop excessive speculation in the futures market. But, this is not enough to stop the weakness in the currency. This weakness has arisen due to rising trade and CAD due to surge in crude oil prices and continuous selling by FPIs in the market.
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