Indian currency slides to historic low against Dollar (Img: Internet)
New Delhi: The Indian rupee weakened to a fresh all-time low of 96.90 against the US dollar on Tuesday, continuing its sharp decline in 2026 amid sustained foreign fund outflows, rising crude oil prices and growing concerns over India’s external balances.
The domestic currency has depreciated nearly 7.8 per cent since the start of the year and over 13 per cent compared to the same period last year. The rupee had opened 2026 at 89.89 per dollar before steadily weakening through the following months.
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The rupee’s fall has remained largely uninterrupted this year. It slipped to 91.27 in February, crossed 93 in April and weakened further to 94.89 in early May before touching the current record low.
Market analysts said pressure on the currency has intensified due to heavy foreign portfolio investor (FPI) selling and a widening current account deficit.
The Reserve Bank of India had briefly managed to support the rupee in late March through stricter forex exposure rules for banks, which triggered large dollar sales in domestic markets. The currency temporarily recovered to around 92.33 in early April, but the gains proved short-lived.
One of the major reasons behind the rupee’s weakness is the sharp rise in global crude oil prices following geopolitical tensions involving Iran and the United States.
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Brent crude futures were trading above 110 dollars per barrel, raising concerns over India’s import bill and increasing pressure on the country’s external finances. A stronger US dollar has also contributed to weakness across emerging market currencies, including the rupee.
Several market experts believe the rupee may face additional pressure if foreign investor outflows continue and crude oil prices remain elevated.
Analysts have warned that worsening geopolitical tensions and continued capital flight from emerging markets could accelerate the decline further. Some global agencies have also flagged the possibility of the rupee touching the 100 mark against the dollar if current conditions persist.
The RBI is expected to closely monitor the situation and intervene when necessary to prevent excessive volatility in the currency market.
