By BullScreen Editorial Team 
The Indian rupee tumbled to a record low on Monday as rising crude oil prices and strong demand for the US dollar weighed heavily on the currency. The rupee opened weaker at 92.20 against the US dollar and slipped further to an all-time low of 92.528 in early trade, reflecting growing pressure from global and domestic factors.
The sharp fall comes amid a dramatic spike in global oil prices. Brent crude, the international benchmark, surged more than 25% to around $118 per barrel in futures trade as tensions intensified between the United States, Israel, and Iran. The rise in crude prices has significantly increased demand for dollars from oil-importing nations like India, putting additional pressure on the rupee.
Forex traders said the currency was also hit by strong foreign institutional investor outflows and a steep sell-off in Indian equities. The rupee had already weakened in the previous session, ending 18 paise lower at 91.82 against the dollar on Friday.
Market experts warn that the currency could remain under pressure if oil prices stay elevated. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee remains vulnerable as crude prices have jumped more than 28% since the last market close on Friday. He also noted that Asian currencies were broadly weaker on Monday.
According to Bhansali, the rupee may weaken further and could test the 93 level if crude oil continues to trade above the $100 mark in the coming sessions.
Currency specialist K N Dey said the rupee opened nearly 46 paise weaker from Friday’s closing level and is facing strong demand for dollars from importers and oil companies. He added that intervention by the Reserve Bank of India could help limit excessive volatility in the currency market.
Dey also pointed out that uncertainty will continue until there are clear signs of easing geopolitical tensions and improvement in global supply chains.
Ponmudi R, CEO of Enrich Money, said the USD/INR pair has climbed to fresh record highs amid rising geopolitical risks and surging crude prices. He noted that the pair is currently hovering near the 92.30–92.32 zone, supported by the ongoing demand for the US dollar as investors move toward safe-haven assets.
He added that higher oil import costs and a stronger dollar are continuing to exert sustained pressure on the Indian currency. According to him, the technical trend also remains positive for the US dollar, with the chart showing a pattern of higher highs and higher lows in recent months.
Ponmudi said that if the USD/INR pair sustains above the 92.30–92.32 range, it could extend its rally further. On the downside, he identified the 91.90–92.00 zone as an immediate support level, adding that a fall below this range could trigger short-term profit booking or possible intervention by the Reserve Bank of India.
Meanwhile, the dollar index, which tracks the US currency against a basket of six major currencies, rose 0.66% to 99.64, highlighting the broad strength of the greenback.
Back home, Indian equity markets also faced heavy selling pressure in early trade. The Sensex plunged more than 2,400 points, while the Nifty dropped 708.75 points to slip below the 24,000 mark.
Exchange data showed that foreign institutional investors remained net sellers in the previous session, offloading equities worth ₹6,030.38 crore on Friday.
Despite the current volatility, India’s forex reserves remain strong. The Reserve Bank of India recently reported that the country’s foreign exchange reserves rose by $4.885 billion to reach a record high of $728.494 billion for the week ended February 27, offering some cushion against currency fluctuations.