Indian Rupee Hits Fresh Record Low of Rs.96.90 Against US Dollar

The Indian rupee depreciated by 20 paise in early trade on Wednesday to touch a new all-time low of Rs.96.90 against the US dollar, extending its prolonged weakness amid a strong greenback, soaring crude oil prices, and sustained foreign investor outflows.

According to market participants, the domestic currency opened weaker and quickly breached previous lows, driven by global risk aversion and elevated energy costs. Crude oil prices have climbed above $110 per barrel, fueled by geopolitical tensions in the Middle East. India, which imports over 80% of its crude oil requirements, is facing a widening trade deficit as a result.

This marks yet another record low for the rupee in 2026, with the currency now among Asia’s worst performers for the year, having depreciated significantly since the start of the calendar year. Analysts note persistent foreign institutional investor (FII) selling in Indian equities has added pressure on the balance of payments.

The Reserve Bank of India (RBI) is closely monitoring the situation and has been intervening in the forex market by selling dollars from its reserves to curb excessive volatility. However, structural factors including high oil imports and a resilient US dollar continue to challenge the currency.

Exporters may benefit from the weaker rupee, but it raises concerns over imported inflation, particularly for fuel and essential commodities, potentially complicating monetary policy decisions.

Market watchers expect volatility to persist in the near term as global oil prices and geopolitical developments unfold.