The rupee dived to a fresh record low on March 18, as importers, likely oil marketing companies, rushed to hedge positions amid fears of higher crude prices in the coming days.

The rupee ended the day at Rs 92.63 against the dollar after closing the previous session at Rs 92. It had fallen to 92.64 intraday.

Market participants and analysts widely expect the rupee to test the 93 psychological mark on a surge in demand for dollars from OMCs.

The rupee has fallen to record lows at least five times in the last 10 sessions, tracking the crude’s upward march as the Iran war disrupts energy supplies.

The benchmark Brent crude, which remained stubbornly above $100 a barrel, has gained approximately 40.2 percent since February 28, when the US and Israel launched strikes on Iran.

After opening 5 paise lower, the rupee moved in a narrow range of about 10 paise. In the last hour, importers swooped in to buy dollars ahead of a market holiday on March 19, pushing the rupee to a new low, traders said.

Elevated crude prices remain a worry for India, which meets 85 percent of its fuel needs through imports. Higher prices add to the import bill and strain the current account, which in turn weighs on the rupee. The rupee has slumped more than 1 percent in the three weeks of the Iran war.

In the last few sessions, the Reserve Bank of India (RBI) has reportedly intervened aggressively in the market to arrest rupee’s fall.

The central bank will closely monitor the 93 mark, though it may allow the rupee to slide if Brent crude continues to trade above $100.

“It will not be long till the rupee falls to the Rs 93 per dollar level. Oil marketing companies have to get more dollars to pay,” a forex dealer with a state-owned bank said.

In the coming session, 92.75 and 92.90 are the levels to watch. There will be some resistance at these levels but the rupee is likely to cross 93, the dealer said.

Globally, market participants await the US Federal Open Market Committee meeting decision, with economists expecting the American central bank to hold interest rates at 3.50 percent–3.75 percent till conditions improve.