Indian rupee weakens to RO241 per Omani riyal, further slide expected

For Indian expatriates in the Sultanate of Oman, one exchange house and banks remain closed due to Eid al-Fitr holidays and the weekend, but online platforms, including some local bank apps, were quoting rates of 241.42 and above per Omani Rial.

"If the conflict continues, the rupee may remain under pressure and could weaken further towards 245 per Omani Rial. Even with a return to normalcy, a rebound to levels around 230 appears unlikely in the near term,"  said advocate R. Madhusoodanan, a financial expert based in Oman.

The Indian Rupee hit a record low of 93.76 against the US dollar, before closing at 93.73, compared to 92.63 on the previous trading day. The sharp depreciation is primarily driven by surging crude oil prices, rising tensions around the Strait of Hormuz, and significant outflows from Indian equities by foreign investors, he said.

The rupee has been under sustained pressure in recent months, partly due to delays in concluding a trade agreement with the United States. Over the past year, the currency has depreciated by more than 7 percent, making it one of the worst-performing currencies among its peers, said Madhusoodanan

"As a major importer of crude oil, India is particularly vulnerable to rising energy prices. Crude oil prices have increased sharply from around $73 per barrel in February 2026 to $107.8 in March. This spike is expected to widen the country’s current account deficit. India’s substantial import bill—covering oil, defence equipment, gold, and electronic goods—means that any depreciation in the rupee has far-reaching implications for the balance of payments."

Additionally, supply chain disruptions, along with higher shipping costs and insurance premiums, are likely to further push up fuel prices. This, in turn, will add to inflationary pressures across the economy.

For NRIs

While Non-Resident Indians (NRIs) may benefit from the rupee’s depreciation—as their foreign earnings translate into higher value in rupee terms—the broader impact is mixed. Indian students studying abroad will face significantly higher costs, as will those seeking medical treatment or travel overseas. Borrowers with loans denominated in foreign currencies will also experience increased repayment burdens, he said.

Over the medium to long term, India continues to hold strong potential as a preferred destination for foreign investment, which could support currency stability.

"However, reducing dependence on imported energy remains critical. Accelerating the transition towards renewable energy sources is essential to achieving long-term resilience and addressing the structural challenges posed by external shocks."  

The dollar inched up on Friday but was still headed for a weekly fall as soaring energy prices transformed the ​outlook for global interest rates, leaving the US Federal Reserve as the only major central bank not expected to raise rates this year, according to agencies.