Rupee Falls to Record Low Near ₹94/USD; RBI Deploys $12–15 Billion From Forex Reserves

March 2026 (ongoing)
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Source: CNBC; Bloomberg; Multibagg AI; Economic Times; Wikipedia — Economic Impact of Iran War

The Indian rupee fell to a record low near ₹94 against the US dollar, driven by surging oil import costs and aggressive FII selling (over $3 billion pulled from equities in March). The RBI deployed an estimated $12–15 billion from its forex reserves (total reserves at ~$723 billion) to prevent a sharper fall, intervening in spot, forward, and offshore NDF markets. The government also imposed limits on currency-hedging positions for banks, which helped stabilise the rupee. By mid-April, the rupee has recovered somewhat to the ₹92–93 range with RBI support.

💰 Impact on your wallet: A weaker rupee affects you in multiple ways. Petrol/diesel become more expensive (oil priced in dollars). Imported goods — electronics, some medicines, certain food items — cost more. Foreign education costs have effectively jumped 10% in rupee terms versus a year ago. However, if you hold international mutual funds (US/global equity), the depreciation boosts your rupee returns. NRIs get more rupees per dollar. IT sector employees may see better hikes as their companies benefit.

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