Kolkata: The Indian rupee came under immense pressure against the backdrop of the West Asian crisis deepening with Iran hitting the biggest gas fields in the Guld region and US president Donald Trump threatening crippling strike against Iranian energy assets if it continues to target gas and oil fields. Reuters reported the rupee sinking to 93.46 against the US dollar in non-deliverable forwards. The one-month non-deliverable forward was quoted at 93.46 to the greenback, which was an indicator that the rupee could descend towards the 93 mark in India.
Forex market closed today
Incidentally, the foreign exchange market, currency derivatives and debt markets are closed today, March 19, 2026, on account of Gudi Padwa. In fact, this comes as a welcome break as the pressure on the Indian currency increases due to the ongoing crisis in West Asia and continuous rise of the crude prices. India imports close to 90% of its crude requirements and more than 60% of its gas needs which must be paid for in US dollars.
Pressure on the rupee
The key pressure on the rupee came from the crude oil prices that jumped on Wednesday. The rise was as high as 5% when prices of benchmark Brent crude moved past the $112 per barrel mark as both the parties targetted the energy infrastructure of the other side. Meanwhile, the crucial Strait of Hormuz which handles 20% of the world’s maritime transport of crude oil, remains closed.
Data showed that Brent crude moved past the $112 per barrel, while crude futures in the US jumped 3% to reach $99.39 per barrel. Natural gas prices surged by more than 5%. Earlier, Iran had said that it will not deescalate and cautioned the world to be ready for the unimaginable level of $200 a barrel. Incidentally, the peak crude prices were witnessed in July 2008, when Brent crude reached nearly $147.50 a barrel.
Other factors working against the rupee
Crude oil has to paid for in dollars and rise in its prices raise the demand of the greenback, pulling down the rupee. As the rupee goes down in value, it creates more pressure on foreign institutional investors to sell Indian equities, which, in turn, creates more pressure on the rupee. The rise in crude prices expands the current account deficit in India.
US Iran war escalates
Iran attacked several energy facilities across West Asia on Wednesday, following a strike on its South Pars gas field. On the economy front, the US central bank sounded a hawkish tone on March 18, when it cited major inflation concerns to keep key interest rates unchanged at 3.5-3.75%. If the rates were cut, they would have signaled better times for the Indian markets since foreign investors would have felt encouraged to seek better returns and invest in India. On the contrary, the US Fed upped the inflation forecast to 2.7% — as against the mandate of maintaining it at 2% — towards the later part of the year.