India’s rupee has suffered its sharpest one-day plunge in four years, crashing through the 93 mark against the dollar to an all-time low. With India importing nearly 90 per cent of its crude oil and around half its natural gas, the currency is highly exposed to the global energy shock now unfolding. In an interview with the Financial Times on Friday, Fatih Birol warned the war has triggered “the greatest global energy security threat in history”. That exposure has become more acute as Iran has effectively choked off the Strait of Hormuz, which carries a fifth of global oil and gas flows. “The rupee could be more vulnerable if the conflict drags on, which mainly reflects its exposure to higher energy prices,” says Vivek Rajpal, Asia macro strategist at JB Drax Honore.

Source: The Telegraph March 20, 2026 16:59 UTC