Dollar Surges Past Rs 95 Mark as Rupee Slides to Record Low Amid West Asia War Fears

A prolonged West Asia conflict triggered heavy volatility in Indian markets on Monday, pushing the rupee to a record low against the US dollar. Equity benchmarks Sensex and Nifty also crashed sharply, wiping out investor wealth.

Mumbai | March 31, 2026: The Indian rupee fell to a historic low on Monday as the US dollar strengthened sharply amid rising global uncertainty linked to the continuing conflict in West Asia. The dollar climbed to Rs 95.23 during the session, marking the weakest level ever recorded for the rupee against the American currency. Market experts said growing concerns over crude oil supply disruptions and fears of higher inflation have added pressure on emerging market currencies, including the rupee. The volatility was reflected not only in currency markets but also across the Indian stock market, which witnessed a sharp sell-off for the second consecutive session.

Benchmark indices suffered a steep fall, with the Sensex plunging by 1,635 points and the Nifty slipping by 488 points during the trading session. The two-session decline has reportedly erased nearly Rs 18 lakh crore in investor wealth, triggering panic among retail and institutional investors. Analysts attributed the sharp decline to aggressive selling by foreign institutional investors (FIIs), who have continued pulling funds out of Indian equities. Data suggests that foreign investors withdrew around Rs 1.23 lakh crore from the stock market up to March 27, intensifying the pressure on both equities and the rupee.

Interestingly, the rupee showed early strength during the morning session, gaining nearly 125 paise. However, the gains were short-lived as the currency began slipping steadily amid a stronger dollar and risk-off sentiment globally. The rupee eventually ended the day near Rs 94.78 after reported intervention by the Reserve Bank of India, which helped prevent a further steep fall. Financial observers warn that if the West Asia conflict continues without any signs of easing, markets may remain volatile and inflationary risks could rise further, impacting both currency stability and investor confidence.

Follow us On Our Social media Handles :
Instagram
Youtube
Facebook
Twitter

Also Read- Pune