North India Statesman
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Monday was a historically volatile day for the Indian currency (INR). The dollar-rupee pair proved all the market estimates wrong. Although the rupee opened strong at 93.58 in early trade, it lost all its gains as the day progressed and touched a record low of 95.12 for the first time in history. It closed almost flat at 94.83 per dollar at the end of the day.
Today, on March 31, the currency market and stock market are closed on the occasion of Mahavir Jayanti, but this drama of Monday has raised many questions among investors and experts.
Why did the rupee break? 4 big reasons for the market
Market experts and dealers have cited the following major reasons behind this historic fall of the rupee:
Huge demand for dollars for Russian oil: America gives 30 days exemption on purchase of Russian crude oil 5th April is coming to an end. Indian refinery companies are in a hurry to buy the oil stranded in the sea, due to which the demand for dollars has suddenly increased.
High prices of crude oil: Crude oil due to Middle East (Iran-Israel) war $115 per barrel Has reached beyond. The need for dollars for oil imports put huge pressure on the rupee.
Withdrawal of Foreign Funds (FII Outflow): Foreign investors withdraw almost every day from the Indian stock market. $500 million Taking out. When investors withdraw money, they sell rupees and buy dollars, causing the rupee to weaken.
Fall in Asian currency: Not only the rupee, but other Asian currencies like won and ringgit also weakened by 0.5% against the dollar.
RBI’s action and banks’ anger
To handle the rupee, the Reserve Bank of India (RBI) forced banks to sell dollars. Market experts believe that if RBI does not intervene, the rupee 95.30 Could fall to the level of. However, this move will allow banks to loss of 40-50 paise Had to be raised, due to which a lot of resentment was seen in the banking sector.
Experts’ opinion: “It is difficult to win from a global tsunami”
Market experts say that RBI alone cannot stop the ‘tsunami’ of global recession and West Asia war. Some experts believe that RBI was not defending any particular level (like ₹ 95), rather it was meeting the market demand through banks’ dollars so that its Forex Reserves Can be kept safe.
Market position today (31 March 2026)
Today on the occasion of Mahavir Jayanti BSE and NSE closed Are. There will be no trading in currency derivatives and interest rate derivatives today. However, considering the international cues and war situation, everyone will be keeping an eye on the movement of the rupee when the market opens on Wednesday.
