Friday 20 / March / 2026
Muscat: The Indian Rupee plunged to a record low of 93.47 against the US dollar, highlighting growing stress in the currency markets. The rupee had closed at 92.63 on Wednesday, the previous trading session, as the Indian forex market remained closed yesterday. On account of Eid holidays, most exchange houses and banks in Oman are shut. While going to press, online platforms in Oman are offering 241.30 for one Omani Rial.
Speaking to Times of Oman, Muscat-based financial expert Adv. R. Madhusoodanan noted that the current level marks an all-time low for the rupee. He attributed the recent depreciation primarily to surging energy prices triggered by escalating tensions in West Asia.
India, which imports over 85 percent of its crude oil requirements, remains highly vulnerable to such external shocks. In 2025, the country imported crude oil and petroleum products worth approximately $70 billion from West Asian nations. The ongoing crisis has led to a dual energy shock—disruptions in oil shipments through the strategically critical Strait of Hormuz and a halt in LNG production in Qatar, coupled with emerging concerns around Iran’s oil infrastructure.
Shipping routes in the region have come under increasing threat, while insurance premiums for cargo have surged, significantly raising the cost of global trade. These developments are exerting pressure on India’s current account deficit (CAD), further weakening the rupee.
The oil shock has also triggered substantial capital outflows from Indian equity markets, compounding the downward pressure on the currency. The rupee has already depreciated by over 7 percent on a year-to-date basis.
The Reserve Bank of India has stepped in to manage volatility by intervening in the forex market through dollar sales. However, the rupee may continue to face heightened volatility in the near term, driven by persistent geopolitical tensions, elevated oil prices, capital outflows, and sustained demand for the US dollar.
