The Indian Rupee continues its fall and hit a new low on Friday to touch 94.85 against the dollar.
Currently, exchanges are offering 245 Indian rupees per RO1. The final rate will be fixed after the closure of the market (2 pm Oman Time), which will be paid till Monday.
On Wednesday, it crossed to $94, marking a new historic low. It went up to 94.18 against the greenback while markets and banks in India were closed on Friday for a religious occasion.
Back home in India, for expatriates, the Indian rupee depreciation may accelerate inflation and widen the current account deficit, which may consequently lead to a higher interest rate scenario.
On Friday, March 20, the Indian rupee dropped to 93.71 per dollar for the first time on Friday and logged its worst single-day drop in over four years, on the same worries over the disruptions to global energy supplies.
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 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.
"India's equity market is also down with continued foreign fund outflows, while the government reduced Excise duty heavily to absorb the additional cost. This will be a burden on govt exchequer."
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."
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, Madhusoodanan 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.
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