NEW DELHI : The rupee dropped as much as 0.8 per cent during trading, marking its steepest daily fall since late January, to reach an all-time low of 92.1850 against the US dollar. The decline came alongside a broader sell-off in financial markets as investors reacted to surging crude oil prices and growing uncertainty in global markets.
In response to the currency’s sharp fall, the Reserve Bank of India (RBI) stepped in to stabilise the market. The central bank intervened by selling US dollars after the rupee breached the key 92-per-dollar level, aiming to contain volatility and support monetary stability.
The pressure on the rupee coincides with a wider wave of risk aversion across Asian markets. Asian stocks recorded their largest drop in nearly a year, with South Korea posting its biggest losses since the 2008 global financial crisis. Emerging market currencies across the region also weakened, with the rupee emerging as one of the worst-performing currencies in Asia.
Adding to the strain, Brent crude oil prices surged to $82 per barrel, rising nearly 12 per cent within two days, the largest increase since 2020. The spike significantly exceeds the $70-per-barrel assumption used by the RBI for the October–March period, raising concerns about higher import costs for oil-dependent economies like India.
The equity market also felt the impact of the global uncertainty. India’s benchmark Nifty 50 index declined by 2.2 per cent, widening the performance gap between Indian equities and global markets as geopolitical tensions continue to weigh on investor sentiment.
The Indian rupee hit a record low against the US dollar, dropping 0.8% amid surging oil prices and Middle East tensions. The Reserve Bank of India intervened to stabilize the market by selling US dollars. The rupee's fall reflects broader risk aversion in Asian markets, with significant drops in stocks and emerging market currencies.