The Indian rupee has hit a new record low in trade on Friday, breaching the 93 mark for the first time. The local currency plummeted to an unprecedented historic low of 93.28 against the US dollar. This sharp decline surpasses the rupee's previous record low of 92.63, which was reached on Wednesday.
The immense pressure on the rupee is another indicator of a bruising period for India's foreign exchange markets. In the last six months, the local currency has depreciated as much as 5.3%, sliding from 87.97 to 92.64.
The picture is quite similar from a year-to-date perspective as well, with the rupee slipping 3.1% from an opening of 89.97. This sustained pressure has cemented the rupee's position as one of the worst-performing Asian currencies of 2026, with a baseline drop of 2.6%.
Here, at NDTV Profit, we will discuss three reasons why the rupee is facing such a downturn in trade on Friday.
Surging Oil Prices Amid Middle East Conflict
The ongoing conflict in the Middle East has weighed heavily on global markets as well as the oil supply chain. India has been one of the main victims, as the country relies heavily on oil imports. With Brent crude prices climbing roughly 40% since the conflict started, India has faced a widening import bill, thus draining dollar reserves.
ALSO READ: Oil Shock Impact: Rupee Hits 93 Against US Dollar
Strong U.S. Dollar Demand
Amid global uncertainty, international investors are aggressively flocking to the safety of the greenback. This robust global demand for the U.S. dollar inherently devalues emerging market currencies.
Hawkish Fed Stance
The U.S. Federal Reserve's persistently hawkish stance, as highlighted by the US Central Bank's recent decision to keep rates steady, continues to draw capital away from emerging Asian markets, keeping the dollar dominant and further depressing the rupee's valuation.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.