Daijiworld Media Network – New Delhi
New Delhi, Mar 9: The Indian rupee touched a record low of 92.33 per US dollar on Monday, March 9, as a sharp rise in global oil prices triggered concerns about India’s external balances.
The rupee opened 0.50% lower, or 46 paise, at 92.1975 per US dollar, compared with its previous close of 91.74 on Friday. The drop of more than 50 paise marked one of the steepest single-day declines for the currency in recent months, highlighting growing pressure on the rupee.
Market reports suggested that the Reserve Bank of India (RBI) likely intervened in the foreign exchange market earlier in the session to curb volatility. Traders indicated the central bank may have sold dollars before the domestic spot market opened, allowing the rupee to briefly recover from around 92.30 to 92.20 before trading officially began.
Global oil prices have climbed sharply amid escalating tensions in the Middle East. Brent crude surged more than 25% to about $117 per barrel, following a nearly 28% jump last week after the onset of the Iran war.
The almost 50% rise in oil prices has been driven by the intensifying conflict involving the United States, Israel and Iran, with concerns that supply disruptions could occur through the strategic Strait of Hormuz.
For India, which imports a large portion of its crude oil requirements, higher oil prices significantly increase import costs, potentially widening the current account deficit and putting further pressure on the rupee.
Meanwhile, Iran announced the appointment of Mojtaba Khamenei as successor to his father, Ali Khamenei, as the country’s supreme leader, signalling continued influence of hardline leadership amid the ongoing conflict.
Market experts say the rupee could remain under pressure if oil prices continue to stay elevated.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, told Press Trust of India that the rupee remains vulnerable as oil prices have risen by more than 28% since last Friday.
Asian currencies also weakened on Monday, reflecting broader risk-off sentiment in global markets.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, rising geopolitical tensions and increased demand for the US dollar have amplified pressure on the rupee.
He said key resistance levels for the USD/INR pair are 92.50, 92.70 and 92.80, with the currency potentially moving toward 93 if current trends persist. On the downside, support levels are seen at 91.80 and 91.50.
Similarly, Amit Pabari, Managing Director of CR Forex Advisors, said the USD/INR pair has been strengthening its support base, with 91.40–91.50 likely to act as a strong support zone in the near term.
“If this base holds, the pair could gradually move toward the 92.50–93.00 range in the coming sessions,” Pabari said.