Rupee pinned to lifetime low on stubbornly high oil, heavy equity outflows

The Indian rupee is set to hold near its all-time low on ​Monday, pressured by concerns that the intensifying Iran conflict ‌could keep crude prices higher for longer and ​sustain importer dollar demand. The 1-month non-deliverable ⁠forward indicated the rupee will open in the 92.42–92.48 range against the US dollar, compared with 92.4550 on Friday, when ‌the currency touched a lifetime low of 92.4750. Brent crude hit a high of $106.10 on ‌the day, extending a rally that has pushed ‌prices ⁠nearly 40 per cent higher since the Iran war ⁠began on February 28. There are few signs of the conflict cooling. US President Donald Trump said on Sunday that his administration ​is in talks with ‌seven countries about helping secure the Strait of Hormuz, urging them to step up protection for ships transitioning the major oil artery, which Tehran has largely ‌blocked to tanker traffic. Meanwhile, Iran on Saturday ​warned it would target any facility in the region with US ties, after Washington ⁠bombed what it said was Tehran's main energy hub. "The risk now is that $100-plus oil becomes the new ‌normal for a while," a currency trader at a bank said. "If that happens, the rupee will likely need to weaken further to absorb the higher external imbalance." Risk sentiment remained fragile amid oil worries persisting. Asian equities extended last week's losses, while ‌the safe-haven dollar held above the 100 mark. Indian equities have ​come under intense pressure, amplifying strains already been building before the conflict. The Nifty 50 plunged ⁠5.3 per cent last week and is down roughly 8 per cent so ⁠far his month. The equity slump has coincided with persistent foreign outflows. Overseas investors have pulled $5.7 ‌billion from Indian equities this month through Thursday, with preliminary data suggesting the pace of selling accelerated ​on Friday, with outflows exceeding $1 billion. Published on March 16, 2026