The Rupee on Wednesday breached the 92 to the US Dollar mark amid intensifying West Asia war, rising global crude oil price, and Indian equity market being weighed by continuous selling pressure from foreign portfolio investors.
Moreover, the Dollar is gaining strength against other currencies as global investors are piling into Dollar assets due to risk-off sentiments in the midst of geopolitical tensions arising from the US-Israel combines attacks on Iran.
The Indian currency opened 56 paise weaker at 92.05 against the Dollar (previous close: 91.49) and is currently trading at 92.1725.
“Four days into the conflict, Israeli and U.S. forces have intensified strikes across Iran. In response, Iran has launched retaliatory drone attacks on U.S. missions in the Gulf. U.S. President Donald Trump stated that major targets had been “knocked out,” but fears of a wider regional conflict continue to rise. The bigger concern for markets is oil. Brent crude is moving higher as tensions escalate,” said Amit Pabari, MD, CR Forex Advisors.
Iran has warned that it may close the Strait of Hormuz and has threatened action against ships passing through the key oil and gas route. This has pushed Brent sharply above the $80 per barrel mark, reflecting rising supply concerns.
“For India, which imports most of its crude oil, higher prices directly mean higher import bill. This, in turn, will result in wider trade deficit, more dollar demand and pressure on the Rupee,” opined Pabari.
Published on March 4, 2026