Rupee At New All-Time Low, Breaches 94 Per Dollar Mark Amid War-Induced Inflationary Pressures

The Indian rupee continued its losing streak on Friday, breaching the 94 per dollar mark to hit a new all-time low. The currency fell to 94.40 per dollar after opening lower at 94.16 per dollar compared to its previous close of 93.98 per dollar.

The rupee has declined almost 3.4 percent since the start of the war in late February. The currency was valued at 91.08 on February 27, a day before the start of the war. As the war nears a month, the currency is expected to face further losses.

The currency has taken less than a week to decline from 93 per dollar to 94 per dollar. Moreover, in just 114 days, the rupee has slumped from 90 against the dollar to levels of 94.50.

Markets have been volatile since the start of the war, putting emerging market currencies under pressure as the dollar strengthens. Uncertainty over the war has yet to subside amid mixed signals from the war front.

While peace talks between Iran and the United States are ongoing, President Donald Trump is also considering sending 10,000 more troops to the Middle East.

This has raised concerns of a ground offensive if the talks do not result in positive outcomes for the Trump administration.

According to experts, the continuous back-and-forth has kept markets cautious. Hence, volatility is expected to persist until concrete steps are taken towards de-escalation.

The continuous rise in oil prices has also weighed on the rupee due to inflationary concerns. Global benchmark Brent crude still hovers around $108 per barrel, up almost 60 percent from pre-war levels of $65–68 per barrel.

According to a report by ICICI Bank, retail inflation in financial year 2026–27 may rise to 4.5 percent due to higher fuel prices. This is an increase of 60 basis points from the previous forecast. Earlier, ICICI Bank had projected FY27 inflation at 3.9 percent.