Rupee Falls To Record Low Of 95.8 Against U.S. Dollar Amid Crude Oil Pressure

The Indian rupee weakened to an all-time low of 95.8 against the U.S. dollar on Wednesday, declining 6 paise from its previous close of 95.74, as concerns over rising import costs and sustained demand for dollars kept market sentiment weak.

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During the trading session, the rupee briefly strengthened to 95.51 after the government announced higher import duties on gold and silver to curb the current account deficit (CAD). However, the recovery did not sustain as importers continued to buy dollars and companies met overseas debt obligations.

The rupee has declined more than 6% in 2026 so far, making it the weakest-performing currency in Asia this year. The currency has also fallen over 5% since tensions escalated in West Asia earlier this year.

Government Measures And Import Concerns

The Centre recently raised duties on gold and silver imports as part of efforts to reduce pressure on India’s import bill and foreign exchange reserves.

Haresh V of Geojit Investments said higher import duties could help reduce the current account deficit in the short term because gold contributes nearly 9-10% to India’s total imports. He also noted that similar duty increases in the past had led to higher smuggling activity when import duties stood at 15%.

India imports more than 85% of its crude oil requirement, making the rupee vulnerable to fluctuations in global energy prices. Brent crude prices have remained elevated due to the continuing conflict in West Asia and concerns around supply disruptions.

Higher oil prices have increased India’s import costs and widened pressure on the current account deficit, while also contributing to upward revisions in inflation estimates.

RBI Intervention And Market Outlook

The Reserve Bank of India (RBI) has intervened in the foreign exchange market multiple times in recent weeks to limit excessive volatility in the rupee, as per reports. Regulatory steps and liquidity measures have also been introduced to manage dollar demand.

Jateen Trivedi, Research Analyst at LKP Securities, said markets are monitoring additional government measures aimed at controlling imports and supporting the rupee. According to him, the near-term trading range for the rupee is expected between 95.45 and 96 against the U.S. dollar.

Analysts have also highlighted that any sustained recovery in the rupee would depend on a meaningful decline in crude oil prices and improvement in foreign capital inflows into Indian markets.

Global currencies traded within narrow ranges on Wednesday, although geopolitical tensions and high oil prices continued to remain a challenge for central banks and emerging market economies.

The rupee’s movement will continue to be influenced by crude oil trends, capital flows and developments related to the ongoing conflict in West Asia.