Rupee depreciates 0.5% to ₹91.4 a dollar on Iran-U.S. strikes

Indian rupee depreciates 0.5% to ₹91.4 a dollar after Iran and U.S. strikes sent crude prices skyrocketing 8% on March 3, 2026. 

The pair responded to oil price shocks that came as an outcome of Iran reportedly shutting the Strait of Hormuz which sustains the transit of about a fifth of the world’s fuel. The Brent crude futures reached a high of $82 in a session and pared gains to settle at $79, which was about 8% more than the previous close. 

Currency market in Indian will need continued monitoring as it multiple factors are at play, said Madan Sabnavis, chief economist of Bank of Baroda . He said that a lot will depend on the movement of the dollar index. Importers may buy dollars in panic and exporters may hold back their earnings. Further, currency traders would be on the lookout for speculative gains, Mr. Sabnavis said.

Foreign investment , both institutional and direct, may face a decline in real returns (returns after accounting for depreciating Indian currency).

A war in the gulf would also adversly affect remittances that come into India as they are major employers of Indian labour. “If this leads to lower pay due to stoppages in oil mining, there can be a slowdown from this section,” Mr. Sabnavis said.

Technically, the rupee is not expected to depreciate further than ₹92 a dollar and is not expected to appreciate beyond ₹91.1 for the greenback, according to Dilip Parmar, Senior Research Analyst at HDFC Securities.