Noida, May 5 (APAC Media): The Indian rupee fell to a record low of 95.40 against the US dollar in early trading on Tuesday, extending its sharp decline amid persistent global and domestic pressures.
The domestic currency weakened by about 17 paise from its previous close after ending Monday at an all-time low of around 95.23. The continued decline reflects sustained pressure in the foreign exchange market, driven by strong dollar demand and adverse global cues.
Forex dealers said rising crude oil prices, coupled with geopolitical tensions in West Asia, have significantly weighed on the rupee. Higher oil prices tend to widen India’s import bill, increasing demand for the US dollar and putting further pressure on the domestic currency.
In addition, continued foreign capital outflows and a strengthening US dollar have further dented investor sentiment. Market participants said heightened global uncertainty, particularly stemming from ongoing US-Iran tensions, has triggered risk aversion among investors, exerting pressure on emerging market currencies, including the rupee.
The rupee has now depreciated more than 5 per cent so far in 2026, making it one of the weaker-performing Asian currencies this year. Analysts said persistent dollar demand from importers, along with the maturing of forward contracts, has added to the downside pressure on the domestic currency.
Meanwhile, the Reserve Bank of India (RBI) is reportedly exploring measures to stabilise the currency, including steps to attract dollar inflows and bolster foreign exchange reserves. These measures may include schemes targeting non-resident Indian deposits and easing investment norms for foreign investors.
Experts said the rupee’s trajectory will largely depend on global oil prices, capital flows, and geopolitical developments. They added that any escalation in global tensions or further rise in crude prices could push the currency to fresh lows in the near term.
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