Rupee hits record low of ₹93.71 per US dollar
The Indian rupee just slid to a record ₹93.71 per US dollar, its lowest ever.
This sharp drop is mainly because global oil prices have shot up to $108 a barrel, and foreign investors are pulling huge amounts of money out of Indian stocks.
In just the first 20 days of March, FIIs have withdrawn over ₹88,000 crore, one of the biggest monthly exits since 2024.
Every $10 jump in oil adds $1 billion to India's current account deficit
India's budget planned for much cheaper oil, $75 a barrel, but every $10 jump in oil adds $1 billion to India's current account deficit, said Anil Bhansali of Finrex Treasury Advisors.
Plus, as foreign investors sell off and take dollars out, more rupees flood the market, making each rupee worth even less.
Analysts warn rupee could slip further if oil keeps climbing
Analysts think the rupee will hover between ₹93 and ₹94.25 for now but warn it could slip further if oil keeps climbing toward $120.
Anindya Banerjee of Kotak Securities said the RBI is stepping in to calm things down but probably can't stop the slide completely.