Mumbai: The Indian rupee experienced a day of extreme volatility on Monday, March 30, 2026, briefly breaching the 95-mark against the US dollar for the first time in history. The currency hit an all-time intra-day low of 95.22 before recovering slightly to settle at a provisional 94.78. This 165-paise swing occurred as the conflict in West Asia entered its 31st day, driving Brent crude prices to $114.97 per barrel and fueling a global “risk-off” sentiment that has seen investors flee emerging market assets in favour of the greenback.
In an effort to curb speculation and stabilize the currency, the Reserve Bank of India (RBI) issued a circular on March 27, 2026, capping the Net Open Position (NOP-INR) for banks at $100 million. While this move initially allowed the rupee to open stronger at 93.62, the momentum was quickly overwhelmed by surging oil prices and a firm US Dollar Index, which remains above the 100-mark. Since the commencement of hostilities on February 28, the rupee has depreciated by 4.1 per cent, contributing to a nearly 10 per cent decline over the current fiscal year.
Despite the turbulence, Finance Minister Nirmala Sitharaman maintained a confident stance in Parliament on Monday, asserting that India’s economic fundamentals remain robust. She noted that the rupee is performing “absolutely fine” when compared to other emerging market peers facing similar geopolitical shocks. Meanwhile, the domestic equity markets mirrored the currency’s distress, with the Sensex diving over 1,635 points. Minister of State for Finance Pankaj Chaudhary reiterated that while the rupee’s value is market-determined, both the government and the RBI are maintaining a “close watch” to prevent disorderly movements.
