Rupee Hits Record Low, Breaches 95 Per U.S. Dollar Amid Oil Surge

On March 30, 2026, the Indian rupee breached the mark of 95 against the U.S. dollar for the very first time, but it ended up closing at a record low of 94.83 against the previous closing of 94.81.

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According to Reuters, the currency touched an intraday low of 95.21 per dollar, marking a 0.3% decline during the session. The rupee has now depreciated 4.4% against the U.S. dollar during the March quarter and is on track for its steepest fiscal-year decline since 2011–12.

RBI Measures Provide Limited Support

The rupee opened stronger during the session after the Reserve Bank of India (RBI) tightened limits on banks’ net open foreign exchange positions. The central bank mandated that lenders cap their net open rupee positions in the onshore deliverable market at $100 million by the end of each business day, effective April 10, 2026, according to Reuters.

However, the gains were short-lived, and the rupee lost as much as 160 paise from its opening level. The reason behind this is the fact that market participants adjusted their positions in response to the regulatory change, with corporates undertaking arbitrage between the onshore and offshore currency markets.

Oil Prices And Global Factors Weigh

High crude oil prices have continued to be one of the factors impacting the Indian currency.. Brent crude has surged sharply in March amid disruptions linked to the ongoing West Asia conflict, increasing concerns for India, a major oil importer.

Reuters reported that the rupee has declined for four consecutive weeks, including a nearly 1% drop last week alone. Persistent foreign portfolio outflows and a strong U.S. dollar environment have added to the pressure on the domestic currency.

Impact On Bond Yields And Markets

The weakening rupee has also coincided with an increase in bond yields. The 10-year bond yield has gone past the 7% mark during intraday trade. It has touched 7.0121%, which is its highest since July 5, 2024, compared to its previous close of 6.9419%.

At the same time, concerns over rising energy costs and currency depreciation have weighed on broader financial markets. Indian equities are on course for their steepest monthly decline since March 2020, while bonds are set for their weakest fiscal-year performance since 2023, according to Reuters data.

Ongoing Volatility In Currency Markets

The rupee’s fluctuations are in line with the overall volatility in the foreign exchange markets. The RBI’s regulatory move is having its impact on market positions, but the rupee is still vulnerable to external influences, including oil prices.

The rupee’s breach of the 95 per U.S. dollar mark and its record closing low is an indication of continued pressure on the rupee as it approaches the end of the financial year.