Rupee Hits Record Low Beyond 95 Against Dollar; Sensex Plunges 1,635 Points
New Delhi: The final trading day of the financial year 2025–26 turned out to be highly unfavorable for both the currency and stock markets in India. The Indian rupee weakened sharply, crossing the 95 mark against the US dollar for the first time in history.
This means that more than ₹95 was required to purchase one US dollar during the day’s trading. The sharp depreciation reflects growing pressure on the domestic currency amid global and domestic uncertainties.
One of the key factors behind the decline is the ongoing geopolitical tension in the Middle East, which has now entered its fifth week. The conflict has pushed up global crude oil prices, increasing India’s import bill. At the same time, foreign investors have been pulling money out of Indian markets, adding further strain on both the rupee and equity markets.
As a result, concerns are rising over higher inflation and weakening financial stability in the country.
The rupee had already closed at a record low of 94.81 against the dollar last Friday. On the latest trading day, it opened stronger at 93.59 but quickly lost ground, slipping to as low as 95.20 during intra-day trade. However, possible intervention by the Reserve Bank of India helped the currency recover slightly, allowing it to settle at 94.83 by the end of the session.
To curb volatility, the central bank had recently tightened rules for banks dealing in foreign exchange. It capped their daily net open foreign exchange positions at $100 million and instructed compliance by April 10. While the move initially supported the rupee, the relief proved short-lived.
Meanwhile, the stock market also faced heavy selling pressure, with the Sensex tumbling 1,635 points, reflecting investor anxiety and capital outflows.
Overall, during the financial year 2025–26, the rupee has depreciated by around 11.4% against the US dollar—marking one of its steepest declines in over a decade.
