Rupee falls to record low of 94.7 against US dollar:India’s currency faces sharpest yearly plunge in last 14 years

The Indian rupee on Friday, March 27, 2026 reached a record low of 94.7 against the US dollar. This decline in the Indian rupee was recorded due to the ongoing war in West Asia and disruptions in the energy supply chain. The local unit has already fallen by about 4% in just the last month, while it has declined by more than 10% in this Financial Year 2025-26. Experts believe that if crude oil prices continue to surge, the domestic currency could soon touch the level of 98. According to currency market experts, rising tensions in the Middle East have scared investors, causing them to withdraw money from emerging markets and move towards safe investments like dollar and Gold. Biggest fall in rupee since 2011-12 India’s financial year runs from April to March. According to current data, this is the first time in more than a decade that the rupee has fallen so much in a single year. Previously in 2011-12, during the Eurozone crisis, the rupee had fallen by about 14%. From March 31, 2025 until now, the rupee has lost up to 10% value. Inflation in India will rise due to expensive dollar The ongoing conflict in the Middle East is being considered the most serious energy crisis of the past several decades. This is directly affecting India. Oil prices: India’s import bill has increased due to rising crude oil prices. Essential goods expensive: Supply of LPG to plastic and other petrochemical products has been affected. Fear of Inflation: Due to expensive dollar, petrol, diesel and imported goods will become costlier in India, which poses a risk of rising retail inflation. Will rupee fall to 98 per dollar? Analysts have started reducing India’s GDP growth estimates. According to a Bernstein report, if the war drags on, pressure on India’s current account balance will increase and the rupee could cross 98 per dollar level this year. Some analysts have also suggested the possibility of RBI raising interest rates in the next 12 months to control inflation. How will it affect the common man? Foreign education and travel becomes expensive: If you are planning to go abroad or have someone studying overseas, you will need to spend more rupees to buy dollars. Electronics and raw material prices: Mobile phones, laptops and other imported parts may become expensive, as companies pay for these in dollars. Petrol-diesel prices: If crude oil remains expensive like this, then petrol and diesel prices in the country may also increase in the coming time. How is currency value determined? When any currency’s value decreases compared to the dollar, it is called currency falling, breaking, or weakening. In English, it is called currency depreciation. Every country has foreign currency reserves, which it uses for international transactions. The increase and decrease in foreign reserves affects the value of the currency. If India’s foreign reserves in dollars equal America’s rupee reserves, then the rupee’s value will remain stable. If our dollar reserves decrease, the rupee will weaken; if they increase, the rupee will strengthen. Also read this news… Center increases commercial LPG quota from 50% to 70%: Priority to steel-auto and textile sector, 20% additional supply to large industries after restaurants Amid the ongoing gas crisis in the country, the central government has once again directed states to increase LPG supply. On Friday (March 27), the government increased the allocation or quota of commercial LPG cylinders from 50% to 70%. This decision will benefit most those industries that are completely dependent on LPG. Read full news…