New Delhi, March 04, 2026 (Udaipur Kiran) — The Indian rupee fell to a record low of 92.05 against the US dollar on March 4 amid rising tensions in the Middle East and increasing crude oil prices. Earlier in January, the rupee had touched a previous low of 91.98.
Experts say the currency may remain under pressure until the conflict in the region stabilises. So far in 2026, the rupee has declined by more than 2 percent, making it one of the worst-performing currencies among emerging markets this year.
One of the main reasons for the fall is the sharp rise in crude oil prices. Due to the ongoing Israel-Iran conflict, crude oil prices have moved close to $85 per barrel. India imports more than 80 percent of its oil needs, which has increased demand for the US dollar and put pressure on the rupee.
Another factor is the growing demand for safe-haven assets. In times of geopolitical tension, foreign investors tend to withdraw money from riskier assets like stock markets and move funds into the US dollar. The strengthening of the dollar has further weakened the rupee.
Rising concerns about inflation have also contributed to the pressure on the currency. Higher oil prices could push up inflation in India, leading some foreign investors to stay cautious about investing in the Indian market.
Last month, there were signs of improvement after a trade deal between the United States and India encouraged foreign investors to put money into Indian markets. The rupee also showed some recovery during that period. However, as tensions in the Middle East intensified, the short-term relief faded quickly.
The fall in the rupee could have several effects on consumers. Travel abroad and education in foreign countries may become more expensive because people will need more rupees to buy dollars. Imported goods such as mobile phones, laptops and other electronic components may also become costlier as companies pay for them in dollars.
If crude oil prices continue to rise, petrol and diesel prices in India may also increase in the coming period.
According to a Reuters report, experts believe the future movement of the rupee will largely depend on developments in the Israel-Iran conflict and the global oil market. Until tensions ease, the currency may continue to experience fluctuations. It is also expected that the Reserve Bank of India may intervene in the market to prevent further sharp declines.
The value of a currency changes depending on supply and demand compared to other currencies such as the US dollar. When a currency weakens against another, it is known as currency depreciation. Changes in a country’s foreign exchange reserves can also influence the strength of its currency.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
