Rupee vs Dollar: Indian currency hits new low of 93.92 in early trade on March 23; check top triggers

Investing.com data shows that at the opening bell, the USD/INR (US dollar Indian rupee) rates were at 93.738 on Monday, which later surged 0.18% to 93.846, hitting a new low against the greenback. The Indian currency closed at 93.672 after the previous trading session, as per the data.

What’s weighing down Indian rupee?

Monday’s new low for the Indian rupee marked the second consecutive drop for the currency on the backdrop of a stronger US dollar and foreign investment outflow from the country. According to the data collected from NSE, the FII/FPI data for capital markets as of the end of last week showed that ₹5,339.62 crore was the outflow on Friday.

While NSDL data showed that as of March 20, ₹13,415.18 crore outflows were witnessed across asset classes in the Indian market during a single trading day. The money flowing out of emerging markets like India, due to a demand for investors buying dollar further weakens the strength of the Indian currency.

According to the Bloomberg US Dollar Spot Index, the greenback was trading 0.01% higher at 99.654 as of 12:09 a.m. (EDT) on Monday, March 23, 2026. However, the USD is currently under the 100 psychological level, after surpassing the same last week due to the heightened tensions on oil trade.

Other triggers for Indian rupee’s new low

Aside from the strength of the US dollar and the foreign investor outflow from Indian markets last week, the geopolitical triggers were the escalating West Asia conflict between the United States and Iran.

The investors' sentiments were heightened after the Iranian President, Masoud Pezeshkian, on Sunday, said that the Strait of Hormuz will only be open for countries which do not ‘violate our soil.’ Pezeshkian’s comments increased the tensions in the market, which came after President Trump last week said that the United States is considering ‘winding down’ its military efforts in West Asia.

According to a PTI report, the forex traders are facing immense pressure from the rising crude oil prices in the global market.

The crude oil prices were trading over $107 per bbl during the early market hours on Monday, March 23, 2026, as concerns loomed over a potential supply crunch in the global market after Iran’s stance on energy trade.

As of 10:17 a.m. (IST), the Brent crude oil prices were trading 1.53% higher at $108.04 per barrel (bbl), compared to $106.41 per bbl at the previous market close, according to Investing.com data.