Indian Rupee Falls to Record 92.37 per Dollar as Oil Crisis Shakes Markets

The Indian rupee fell to a historic low against the US dollar during trading on March 13, The Times of India reports.

The currency of the BRICS member state dropped to 92.37 rupees per dollar, marking the weakest level in its history.

The depreciation continues a steady trend seen in recent years. In 2021, the exchange rate stood near 75 rupees per dollar, rising to 81 in 2022, 82 in 2023, and 85 in 2024.

Oil Prices and Regional Conflict Pressure the Rupee

Analysts say the currency decline was driven by soaring global oil prices and weakening sentiment in domestic financial markets.

These developments come amid the ongoing conflict in West Asia, which has disrupted energy supplies and increased volatility in global commodity markets.

"The rupee remains vulnerable, and without intervention from the Reserve Bank of India, it could have fallen to 93 rupees per dollar,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors, in an interview with Press Trust of India.

Energy Supply Risks for India

India is the world's second-largest importer of liquefied petroleum gas.

However, the blockade of the Strait of Hormuz by Iran has put a portion of these supplies at risk.

According to estimates from the Indian government, current reserves are sufficient for roughly one month. After that, the country could face shortages that may disrupt the domestic supply of cooking fuel.

Supply disruptions from the Middle East have already begun affecting consumers.

Retail prices for household gas cylinders in India have surged sharply in recent weeks.

The price of a cylinder has risen by more than 250 rupees. While it previously cost around 1,750 rupees, consumers are now paying more than 2,000 rupees for the same product.

Economists warn that continued disruptions in energy supplies could place further pressure on the country's currency, inflation rate and broader economic stability.