Indian rupee hits new historic low, close at 92.63 against US dollar

The Indian rupee hit a grim milestone on Wednesday, March 18, 2026, as it slumped 23 paise to close at a provisional record low of 92.63 against the U.S. dollar. The local currency was battered by a combination of domestic and global pressures, primarily driven by a robust performance of the American greenback and consistent outflows from Foreign Institutional Investors (FIIs). Market sentiments remained fragile throughout the day as traders grappled with the implications of a weakening domestic unit on import costs and inflation.

External factors played a decisive role in the currency's downfall, with escalating geopolitical tensions in West Asia casting a long shadow over global markets. The intensifying conflict has kept crude oil prices at elevated levels, significantly increasing India’s import bill and dampening investor confidence. Forex traders noted that the "risk-off" sentiment prevalent in the market has led investors to flock toward the safety of the dollar, further exhausting the rupee's resilience.

The trading session at the interbank foreign exchange began with the rupee opening at 92.42. For a significant portion of the day, the currency showed some stability, fluctuating within a narrow band of 92.41 to 92.48. However, the stability was short-lived as the unit lost substantial ground during the final hour of trade. It eventually touched a record intra-day low of 92.65 before recovering slightly to its provisional closing mark, marking a sharp decline from its previous close.