Indian Rupee Hits Record Low of 96.25 Against US Dollar Amid Prolonged Decline

The Indian rupee plummeted to a fresh all-time low of 96.25 against the US dollar in early trade on Monday, May 18, extending its steep downward spiral that has persisted for the last six months.

Currency traders reported heavy selling pressure as the dollar strengthened globally amid geopolitical tensions, rising crude oil prices, and expectations of sustained high interest rates in the United States. The rupee briefly touched the 96.25 level before paring some losses but closed the session near its record lows.

Analysts attribute the free fall to a combination of factors, including surging global oil prices triggered by West Asian conflicts, robust dollar demand from importers, and foreign investor outflows. Over the past six months, the currency has lost significant ground, eroding investor confidence and raising concerns about imported inflation, particularly in fuel and essential commodities.

The Reserve Bank of India (RBI) is closely monitoring the situation, with market participants expecting possible interventions to stabilize the unit. However, economists warn that without easing external pressures, the rupee may face further volatility in the near term.

This marks yet another challenging phase for the Indian economy as it grapples with balancing growth, inflation control, and currency stability.