Rupee falls to record low of 96.5 against US dollar

The Indian rupee weakened to a record low of 96.5 against the United States dollar on Tuesday amid elevated global oil prices and economic headwinds caused by the conflict in West Asia.

The value of the Indian currency fell 18 paise during the day, from the previous all-time low of 96.3 reached on Monday.

Tuesday was the seventh consecutive trade session in ⁠which the rupee had lost its value. The Indian rupee has been the worst-performing Asian currency in 2026, with a 6% loss in its value ⁠since the conflict began on February ​28.

The rupee’s value has also fallen because of capital outflows. Foreign institutional investors have withdrawn more than Rs 2 lakh crore from the Indian market in 2026.

The fall in the rupee’s value also came in the backdrop of the benchmark Brent crude trading at $110 per barrel on Tuesday. The price of Brent was $78 per barrel on February 27, a day before the conflict started.

India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz, which has been effectively blocked due to the conflict in West Asia.

Written by Nachiket Deuskar. Edited by Neerad Pandharipande.
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