Indian Rupee Weakens to RO0.241 per Omani Rial: What This Currency Slide Means for Investors and Businesses in Oman
The Indian rupee fell to 93.73 against the US dollar on Friday, marking its steepest single-day decline in over four years due to concerns over global energy supply disruptions.
For Indian expatriates in Oman, many exchange houses and banks remained closed owing to Eid al-Fitr holidays and the weekend. However, online platforms, including some local banking apps, offered exchange rates starting from 241.42 per Omani Rial and above.
Advocate R. Madhusoodanan, a financial expert based in Oman, warned that if the ongoing conflict persists, the rupee could face continued pressure, potentially weakening further to around 245 per Omani Rial. Even with a return to stability, a recovery to levels near 230 in the near term seems unlikely.
The rupee reached an all-time low of 93.76 against the US dollar before settling at 93.73, compared to 92.63 in the previous session. This sharp depreciation is largely attributed to rising crude oil prices, escalating tensions in the Strait of Hormuz, and significant foreign investor withdrawals from Indian equities.
The currency declined more than 1% to 93.73, surpassing the previous record low of 92.63 recorded on Wednesday. It closed the week at 93.71, marking a weekly loss of about 1.3%—the steepest since late 2022, Reuters reported.
Madhusoodanan highlighted that the rupee has been under sustained pressure in recent months, partly due to delays in finalizing a trade agreement with the United States. Over the past year, the rupee has depreciated by more than 7%, making it one of the worst-performing currencies in its peer group.
“As a major crude oil importer, India is particularly vulnerable to rising energy prices,” he noted. Crude prices surged from around $73 per barrel in February 2026 to $107.8 in March, a spike expected to widen India’s current account deficit. With substantial import bills covering oil, defence equipment, gold, and electronics, any depreciation of the rupee has far-reaching implications for the country’s balance of payments.
Supply chain disruptions, coupled with higher shipping costs and insurance premiums, are likely to raise fuel prices further, intensifying inflationary pressures across the economy.
For Non-Resident Indians (NRIs), the rupee’s depreciation may prove beneficial as their foreign earnings convert to higher rupee values. However, the overall impact remains mixed: Indian students abroad will face increased expenses, as will those seeking medical treatment or travel overseas. Borrowers with foreign currency loans will also face higher repayment costs.
In the medium to long term, India maintains strong potential as an attractive destination for foreign investment, which could help stabilize the currency. Nevertheless, reducing dependence on imported energy is critical. Accelerating the shift to renewable energy sources is essential for achieving long-term resilience and addressing structural vulnerabilities to external shocks.
Meanwhile, the US dollar inched higher on Friday but was still set for a weekly decline. Soaring energy prices have altered expectations for global interest rates, leaving the US Federal Reserve as the only major central bank not anticipated to raise rates this year.
— Omanet.om
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The sharp depreciation of the Indian rupee, driven by rising crude oil prices and geopolitical tensions near the Strait of Hormuz, poses currency risk for businesses in Oman relying on Indian trade or remittances. Smart investors should monitor energy market volatility and consider diversifying portfolios or hedging currency exposure, while entrepreneurs can explore opportunities in renewable energy and fintech solutions for expatriate remittances to mitigate the impact of currency fluctuations.
