The Indian rupee continued its decline over the past two weeks despite the RBI's recent stabilisation measures, according to market data on Tuesday. The rupee depreciated 20 paise to settle at 95.43 against the US dollar, driven by fragile market sentiments following fresh military exchanges between the US and Iran in the Gulf region.
Forex traders said investor anxiety due to instability in the Gulf is causing massive capital flight into safe-haven assets, with the US dollar emerging as the primary beneficiary.
The rupee came under pressure mainly due to fluctuating oil prices and a strong US dollar, while talks to end the conflict and ensure free passage in the Strait of Hormuz remain blocked.
In the interbank foreign exchange market, the rupee opened at 95.30 against the dollar but gradually lost ground before settling at 95.43 in initial trade.
Earlier on Monday, the rupee had fallen by 39 paise to close at an all-time low of 95.23 against the US dollar, as vote counting in five states triggered market volatility.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading at 98.51, up 0.15 per cent.
Gold prices also witnessed a further drop on Tuesday, with rates for 24-karat ten-gram gold slipping below ₹1.5 lakh amid high dollar bond yields and reduced demand for safe-haven metals.
As of May 5, 2026, 22-karat gold in India is trading in the range of ₹137,140–₹137,344 per 10 grams.
International spot gold also declined, hovering around $4,568 to $4,599 per ounce due to ongoing geopolitical uncertainties.
Also read: Brent crude stays above $113 a barrel amid uncertainty in Hormuz
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