Indian Rupee Reaches Record Low Against UAE Dirham Amid Oil Price Surge

Mar 9, 2026

53 min

Mar 9, 2026 08:31

Indian rupee sinks to record low against UAE dirham as oil surge rattles markets

## Rupee's Decline

The Indian rupee has hit a historic low against the UAE dirham, offering better value for expatriates sending money home. On Monday, the rupee traded near 25.12 against Dh1, reflecting a significant drop as global energy markets surged.

## Oil Prices Impact

The decline is largely attributed to a sharp increase in global crude oil prices, which rose nearly 25% to approach $116 per barrel. This surge is driven by geopolitical tensions in West Asia, raising concerns about potential disruptions in energy supply routes, particularly through the Strait of Hormuz.

## Dollar Demand

As oil prices rise, Indian energy importers have increased their demand for US dollars, needed for settling transactions. This has further pressured the rupee, which also saw a fall against the US dollar, reaching its weakest level on record.

## Central Bank Intervention

Despite the rupee's drop, it has fared better than some other emerging market currencies, thanks to interventions by the Reserve Bank of India. These actions have helped stabilize the currency after its recent steep decline.

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