Rupee Closes At Fresh Record Low Of 95.73 Against U.S. Dollar

The rupee settled at a record closing low of 95.73 against the U.S. dollar on Thursday, weakening further amid sustained pressure from elevated crude oil prices, a stronger dollar and concerns linked to inflation.

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At the interbank foreign exchange market, the domestic currency opened lower at 95.74 against the U.S. dollar. During the trading session, the rupee touched an intraday high of 95.61 and slipped to an all-time low of 95.96 before ending provisionally at 95.73. The currency had closed at 95.66 on Wednesday after hitting a previous record low of 95.80 during the session.

The rupee has declined more than 6% so far in 2026, making it the weakest-performing currency among major Asian peers during the period, as per market data.

Crude Oil Prices Add Pressure

Pressure on the rupee intensified after crude oil prices remained elevated following continued tensions in West Asia and disruptions around the Strait of Hormuz, a critical global oil transit route.

India imports more than 85% of its crude oil requirements, making the economy sensitive to fluctuations in global energy prices. Higher crude prices increase the country’s import bill and raise demand for dollars from oil marketing companies and refiners.

The rise in fuel import costs has also added to concerns over inflation. Recent wholesale and retail inflation data showed upward movement in price pressures linked to energy and transportation costs.

According to forex market participants, concerns over imported inflation and foreign fund outflows have continued to affect sentiment in the currency market.

Dollar Strength Weighs On Emerging Market Currencies

The U.S. dollar remained firm against major global currencies as expectations of an early interest rate cut by the U.S. Federal Reserve weakened following recent inflation readings in the U.S.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was trading at 98.51 during the session.

A stronger dollar typically impacts emerging market currencies by increasing pressure on capital flows and raising the cost of imports priced in dollars.

RBI Measures In Focus

Another aspect being closely watched by currency market players is the implementation of policies that will address the problem of rupee devaluation pressures. Recently, the Reserve Bank of India has implemented some tightening measures for some trade position limits and has engaged in periodic foreign exchange interventions.

The government has also looked into increasing import taxes on gold and silver in order to ease the pressures on the balance of payments and foreign exchange reserves.

Meanwhile, the rupee continues to be under pressure due to external factors such as global crude oil prices, international politics and overseas monetary policy cues.