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Rupee crosses 92 per dollar for the first time everThe Indian rupee hit an all-time low of 92.02 per US dollar on March 4, driven by escalating US-Israeli strikes on Iran and rising crude oil prices. Brent crude rose over 1% to $82.32 per barrel.By Anshul  March 4, 2026, 9:06:56 AM IST (Updated)2 Min ReadThe Indian rupee opened at all-time low of 92.02 per US dollar on Wednesday (March 4), weakening 55 paise at the start of trade and crossing 92/$ for the first time ever, as escalating US-Israeli strikes on Iran drove crude oil prices higher and boosted demand for the safe-haven dollar.

The currency had closed at 91.47/$ on Monday (March 2), with Indian markets closed on Tuesday for a holiday.

The previous lifetime low of 91.9875 was recorded in January.

The currency has come under pressure due to soaring oil prices, heightened geopolitical tensions, and foreign fund outflows.

"Triggered by spiking oil prices after the Iran crisis, the rupee declined as investors sought safe-haven assets. Foreign capital outflows and concerns about rising import costs further weighed on the currency," said Dilip Parmar, Senior Research Analyst at HDFC Securities.

Crude oil surge

Brent crude, the global benchmark, rose more than 1% to $82.32 per barrel on Wednesday (March 4), extending a two-day rally of over 11%. Prices had surged past $85 on Tuesday (March 3) for the first time in nearly two years.

Analysts said the rally reflects fears that the widening Middle East conflict could disrupt flows through the Strait of Hormuz, which carries roughly a fifth of the world’s oil and LNG supplies.

"Every $10 move in oil prices can raise India’s current account deficit by around 0.35% of GDP, with inflation impact of 20-30 basis points depending on retail price pass-through," noted DBS Bank.

Impact on domestic markets

Rising crude costs not only inflate the import bill but also push up inflation, widen the current account deficit, and increase dollar demand from oil refiners, adding pressure on the rupee. On Monday (March 2), foreign investors withdrew more than $350 million from Indian equities.

Dollar strength and safe-haven demand

The dollar index rose to a three-month high of 98.41, supported by a weaker euro and global risk-off sentiment. Analysts said this trend, combined with rising crude prices, is likely to keep the rupee under pressure in the near term.

-With Reuters inputsContinue ReadingFirst Published: Mar 4, 2026 8:38 AM ISTTagsDollarrupee