The Indian rupee plunged to an all-time low of 96.60 against the US dollar before ending Tuesday’s session at 96.52 (provisional), pressured by surging crude oil prices, sustained foreign fund outflows, and a firm US dollar supported by global risk aversion.
The rupee has emerged as Asia’s weakest-performing currency in 2026, falling sharply to a historic intraday low of 96.60 against the greenback. The domestic currency has weakened by 1.5 per cent so far this month and has declined more than 7 per cent since the start of the year.
Forex market participants said the rupee continues to face pressure from rising crude oil prices and concerns surrounding the possible disruption of the Strait of Hormuz. At the interbank foreign exchange market, the rupee opened at 96.38 against the US dollar and continued to slide during the session, touching a lifetime low of 96.60 before recovering slightly to settle at 96.52, down 32 paise from its previous close.
On Monday, the rupee had already closed at a record low of 96.20 against the US dollar. “We expect the rupee to remain under pressure amid a strong dollar and rising US Treasury yields. Ongoing geopolitical tensions and continued FII outflows are also likely to weigh on the currency.
Also read: PepsiCo India to invest ₹5,700 cr on capacity expansion by 2030
“However, possible intervention by the RBI and certain restrictions on gold and silver imports could offer some support to the rupee at lower levels. We expect the USD-INR spot price to trade within the 96 to 96.60 range,” said Anuj Choudhary, Research Analyst, Commodities Research at Mirae Asset Sharekhan.
Meanwhile, the dollar index—which measures the strength of the US currency against a basket of six major currencies—was trading 0.05 per cent higher at 99.24 amid lingering tensions involving Iran.
Global oil benchmark Brent crude was trading 1.92 per cent lower at USD 109.95 per barrel in futures trade. Traders noted that emerging economies, including India, continue to remain vulnerable to elevated crude oil prices, as higher energy costs accelerate dollar outflows and prompt foreign portfolio investors to withdraw funds from local markets.
At the same time, US President Donald Trump said he had paused fresh military strikes on Iran following requests from Qatar, Saudi Arabia, and the UAE, adding that serious discussions with Tehran were underway and could potentially lead to a deal.
Trump stated that Saudi Arabia, Qatar, the UAE, and several other countries had requested a delay of two to three days because they believed negotiations were moving closer towards a possible agreement.
In the domestic equity market, the BSE Sensex fell 114.19 points to close at 75,200.85, while the NIFTY 50 slipped 31.95 points to settle at 23,618.
Despite the weak rupee, Foreign Institutional Investors remained net buyers for the third consecutive trading session, purchasing equities worth Rs 2,813.69 crore on Monday, according to exchange data.
Follow us
