Although there was a rise in the stock market on Friday, there is a significant decline in the currency market. The special thing is that the rupee has crossed the level of 93 against the dollar for the first time. The reason for this is the rise in crude oil prices and continuous selling by foreign investors. Due to this fall of rupee, imported inflation may increase. As a result, prices of foreign goods are likely to rise.
Apart from this, the cost of studying abroad and traveling abroad is also going to increase. This effect can also be seen in the prices of petrol and diesel. According to forex traders, rising global crude oil prices put further pressure on the local currency, although a positive start in domestic stock markets helped prevent it from falling further. Let’s take a look at the key data being seen in the currency market right now.
Dollar crossed the level of 93 for the first time
At the interbank foreign exchange market, the local currency opened at 92.92 against the dollar. Subsequently, it breached the 93 level for the first time and traded at 93.08—a fall of 19 paise from its previous closing price. On Wednesday, the rupee had fallen 49 paise to close at a record low of 92.89 against the US dollar. Forex markets remained closed on Thursday due to Gudi Padwa. Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said, “The rupee looks weak; RBI is the only institution that is stopping it from falling further by selling dollars. On Thursday, when Sensex and Nifty fell to 21-month low, FPIs (foreign portfolio investors) sold.”
rise in dollar index
Meanwhile, the dollar index—which measures the dollar’s strength against a basket of six currencies—rose 0.17 percent to trade at 100.25. On the other hand, in international markets, Brent crude futures fell 1.64 per cent to trade at US$ 106.9 per barrel. This happened when just a day earlier the prices of crude oil had reached close to $119 per barrel. Talking about domestic stock markets, the Sensex recovered from Thursday’s heavy fall to close at 75,167.91 with a gain of 960.67 points—or 1.29 per cent—while the Nifty closed at 23,313.65 with a gain of 311.50 points—or 1.35 per cent. According to exchange data, foreign institutional investors (FIIs) sold shares worth a total of ₹7,558.19 crore on Thursday.
No sign of relief for rupee
Major European countries and Japan have offered to join efforts to ensure safe passage of ships through the Strait of Hormuz, while the US has outlined measures to increase oil supplies. The pressure on the rupee is unlikely to ease in the near future; Foreign investors have pulled more than $8 billion from local stocks so far in March—the largest monthly withdrawal since January 2025—on worries about a sudden surge in oil prices. Economists have warned that the continuous rise in energy prices is a major challenge for India. …It could harm economic growth and increase inflation.