India and Afghanistan Currency News: The month of March this year has been full of turmoil in terms of currency amid global economic turmoil and the Iran-America war. Indian currency i.e. Rupee has reached a historical low. The rupee has crossed the level of 95 and reached 95.22 against the US dollar. But do you know that in the month of March, Afghan Afghani (AFN) has shown more strength against Indian Rupee (INR).
If we look at the performance of both the currencies between March 1 and March 31, 2026, a surprising thing is seen.
First talk about Indian Rupee
The rupee remained under heavy pressure in the month of March due to the Iran war. According to data till March 30, 2026, the rupee has depreciated by 9.88% in the financial year 2025-26, which is its biggest annual decline in the last 14 years. During March, the rupee has also crossed the level of 95 against the dollar.
Now let’s talk about Afghan currency
It is worth noting that the currency of Afghanistan has strengthened compared to the rupee. According to the Afghan Central Bank, the Afghan afghani has strengthened by 9.93% against the dollar in the calendar year ending March 20, 2026. Although it saw a slight decline of 4.2% in the first week of March, the Afghan currency remained stable against the rupee till the end of the month.
What is the latest situation?
The exchange rate at the end of March 2026 is approximately like this – 1 Indian Rupee (INR) ≈ 0.67 Afghan Afghani (AFN). This means that in terms of value 1 rupee is smaller than 1 afghani. Although India’s economy is much larger than Afghanistan’s, Afghanistan is currently performing better in terms of the ‘unit value’ and recent ‘strength’ rate of the currency.
What is the reason for weakening of Indian rupee?
Withdrawal of foreign funds- Foreign investors have withdrawn money from the Indian market on a large scale.
Crude Oil Prices: Due to tensions in West Asia, crude oil prices reached $105 – $115 per barrel in March, due to which India’s import bill has increased.
US Tariff: The trade sanctions or tariffs imposed on India by US President Donald Trump have also put pressure on the rupee.
trade deficit: Energy trade was affected due to tensions in the Strait of Hormuz, which affected India’s current account deficit (CAD).
What are the reasons for the strengthening of Afghan currency?
Tight Monetary Policies: The Central Bank of Afghanistan has continuously supplied dollars to the market and controlled currency fluctuations.
Digital Banking and New Notes: The demand and supply of currency is being balanced by eliminating old notes from circulation and expanding digital services.
Limited global trade engagement: Due to its low connectivity with global financial markets, Afghanistan was not affected by the global recession or the strengthening of the dollar as India was.
Data show that the Indian rupee has weakened in March 2026, while the Afghan afghani has maintained its strength. While India faced external shocks (oil and geopolitics), Afghanistan kept its currency from falling due to internal controls and limited market risks.
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