FM backs rupee resilience, rules out change in locker cover

New Delhi: The rupee breached the 95-per-dollar mark in volatile intra-day trade on Monday before recovering to close 7 paise higher at 94.78, even as escalating West Asia tensions rattled global markets and fuelled risk aversion.

The currency swung sharply through the session, hitting a record low of 95.22 after opening stronger, as traders grappled with surging crude oil prices and a firm dollar. Safe-haven demand kept the dollar index elevated, while Brent crude hovered near $115 per barrel amid supply disruption fears. Despite early gains aided by the RBI’s move to cap banks’ net open forex positions, the rupee failed to hold momentum. Analysts attributed the weakness to fading hopes of a US-Iran de-escalation and sustained external pressures on emerging market currencies. The rupee has fallen about 10 per cent in FY26 and over 4 per cent since the conflict began in late February. Equity markets mirrored the stress. The Sensex plunged 1,635 points (2.2 per cent) to 71,947.55, while the Nifty dropped 488 points (2.1 per cent) to 22,331.40, closing the fiscal year with losses of 7 per cent and 5 per cent, respectively. Finance Minister Nirmala Sitharaman on Monday asserted that India’s economic fundamentals remain robust and the rupee is “absolutely going fine” compared to other emerging market currencies, even as it has weakened against the US dollar.

Responding to queries in the Lok Sabha, Sitharaman said the rupee’s depreciation is part of a broader global trend triggered by the ongoing West Asia conflict since February 28, 2026. The rupee has declined 4.1 per cent during this period to close at Rs94.82 per dollar on March 27, while depreciating 9.9 per cent in the current fiscal so far. She noted that several Asian peers, including the South Korean won, Thai baht and Philippine peso, have fallen more sharply against the dollar. “India’s economy is strong, our fiscal situation is strong, and the world is praising our fiscal deficit management,” she said, adding that foreign exchange reserves remain solid.

“Compared to other emerging economies, the rupee is doing fine (theek chal raha hai)...Absolutely going fine.” In a written reply,

Separately, Sitharaman clarified that bank locker holders are entitled to compensation of up to 100 times the annual locker rent in case of loss due to theft or damage.