Indian Rupee crosses record level of 95 against US Dollar, why Rupee's decline is unabated
US Dollar vs. Indian Rupee: On Monday, the Indian Rupee crossed the record level of 95 against the US Dollar for the first time, hitting a new all-time low of 95.2. However, during the day, the Rupee closed at the level of 94.83 against the Dollar, marking a decline of 0.3 percent from Friday's close of 94.81.
The Rupee has been witnessing continuous weakness against the Dollar due to tensions in the Middle East; in March alone, the Indian currency depreciated by 4.4 percent against the US currency.
Following the Reserve Bank of India (RBI)'s decision to lower the overnight Net Open Position (NOP) limit for banks to $100 million, the Rupee opened on a strong note; however, it lost its gains during the session and fell by 160 paise from its opening level. Furthermore, the Rupee declined by approximately 1 percent last week—marking its fourth consecutive weekly decline—and closed at a record low of 94.84 against the Dollar.
Reasons for Rupee's Decline Against Dollar
Driven by rising oil prices, the Indian stock market is also witnessing a downturn alongside the Rupee; in March 2026, the Nifty recorded a decline of over 10 percent—its steepest monthly fall since March 2020, during the peak of the COVID-19 pandemic.
On Monday, the Indian stock market witnessed a major decline during the final trading session of the current financial year (2025-26). By the end of the day, the Sensex stood at 71,947.55, down 1,635.67 points (or 2.22%), while the Nifty closed at 22,331.40, shedding 488.20 points (or 2.14%). Rising conflicts in the Middle East have also driven up global crude oil prices.