Daijiworld Media Network – Mumbai

Mumbai, Mar 30: The Indian rupee breached the 95-per-dollar mark during intra-day trade on Monday amid escalating tensions in West Asia, before settling at 94.78 (provisional) against the US dollar.

Forex traders said the volatility was triggered by the ongoing Iran conflict, which has unsettled global markets and fuelled risk-off sentiment. The USD/INR pair witnessed sharp swings of about 165 paise during the day as the crisis entered its 31st day, keeping energy markets on edge.

At the interbank foreign exchange, the rupee opened at 93.62 and strengthened to 93.57 against the dollar, gaining 128 paise from its previous close after the Reserve Bank of India tightened norms by capping the Net Open Position (NOP-INR) for banks at $100 million through a circular dated March 27, with compliance by April 10.

However, the domestic currency failed to hold gains and plunged to an all-time intra-day low of 95.22 before recovering marginally to close at 94.78, 7 paise higher than its previous close of 94.85. On Friday, the rupee had already slumped by 89 paise to hit a record low.

Market experts attributed the weakness to global uncertainty. “As hopes of de-escalation between the US and Iran faded, risk aversion returned. Investors shifted to safer assets, strengthening the dollar and weakening emerging market currencies like the rupee,” said Amit Pabari, MD of CR Forex Advisors.

Traders noted that elevated crude oil prices and a strong dollar index continue to weigh on the rupee. Brent crude surged to $114.97 per barrel on fears of supply disruptions, while the dollar index hovered above the 100 mark, limiting recovery.

Domestic equity markets also mirrored the negative sentiment, with the Sensex plunging 1,635.67 points to close at 71,947.55 and the Nifty dropping 488.20 points to 22,331.40. Foreign institutional investors remained net sellers, offloading equities worth ?4,367.30 crore on Friday.

Meanwhile, Nirmala Sitharaman asserted that India’s economic fundamentals remain strong, stating that compared to other emerging economies, the rupee is “absolutely going fine” against the US dollar.

Minister of State for Finance Pankaj Chaudhary said the rupee’s value is market-determined and influenced by multiple global and domestic factors, adding that both the government and the RBI are closely monitoring the situation.

Since the onset of the West Asia conflict on February 28, 2026, the rupee has depreciated by over 4 per cent, and nearly 10 per cent during the current fiscal year.