The Indian rupee depreciated sharply on March 9, falling 47 paise in early trade to ₹92.21 against the US dollar. The currency had closed the previous session at ₹91.74 and moved close to its recent record low of ₹92.31 reached last week.

The weakness in the rupee followed a sharp rally in global crude oil prices after the conflict involving the United States Israel alliance and Iran intensified into its second week. The conflict has raised fears of supply disruptions in global energy markets as key fuel and infrastructure assets came under attack, triggering a surge in oil prices.

Brent crude has risen more than 25 percent since the beginning of the month and is currently trading near $110 per barrel. For India, which imports more than 85 percent of its crude oil requirements, higher oil prices significantly increase the import bill and can widen the current account deficit, placing pressure on the domestic currency.

Market participants indicated that the Reserve Bank of India has been intervening in the foreign exchange market to manage volatility. Traders suggested that the central bank sold nearly $12 billion from its foreign exchange reserves during the previous week to stabilise the rupee amid rising global uncertainty.

Currency analysts expect continued volatility if oil prices remain elevated. Treasury experts estimate that the rupee could weaken further toward ₹93 per dollar if crude sustains above the $100 per barrel level over the coming trading sessions.