Forex market in turmoil: Rupee suffers record losses against the dollar
During the trading session, the Indian rupee weakened sharply to 96.60 against the dollar. By market close, the rupee showed a slight recovery, but still closed at an all-time low of 96.52. This record rupee weakness will make imports significantly more expensive, which could directly impact India's crude oil bill and domestic inflation.
On Tuesday, the rupee slipped to a record low of 96.60 against the US dollar, before closing at 96.52 (provisional). This was due to rising crude oil prices, continued foreign capital outflows, and a strengthening dollar amid global risk aversion.
The rupee became Asia's worst-performing currency in 2026, falling to a historic intraday low of 96.60 against the US dollar. The currency has declined 1.5 percent this month and more than 7 percent this year.
Forex traders said the rupee remains sensitive to rising crude oil prices and the closure of the Strait of Hormuz. Let us also tell you what kind of data is being seen in the currency market.
Rupee at record low level
In the interbank foreign currency market, the rupee opened at 96.38 against the US dollar, then fell further and touched a record low of 96.60, finally closing at 96.52 (provisional), a decline of 32 paise from its previous close.
On Monday, the Indian rupee had closed at a record low of 96.20 against the US dollar. Anuj Chaudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said, "We expect the rupee to trade with a negative bias amid a strong dollar and rising US Treasury yields.
Ongoing geopolitical tensions and FII outflows could also put pressure on the rupee. However, any intervention by the RBI and some restrictions on gold and silver imports could support the rupee at lower levels. The USD-INR spot price is expected to trade in the range of 96 to 96.60."
Dollar and Crude Oil
- Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 99.24, up 0.05 percent on rising tensions in Iran.
- In the international market, Gulf countries' crude oil Brent crude, which is the global oil benchmark, was trading at USD 109.95 per barrel, down 1.92 percent in futures trade.
- On the domestic equity market front, the Sensex fell 114.19 points to close at 75,200.85, while the Nifty declined 31.95 points to 23,618.
- Foreign institutional investors remained net buyers for the third consecutive session, purchasing equities worth Rs 2,813.69 crore on Monday, according to exchange data.
Trump halts attack on Iran
Furthermore, traders said emerging market economies, including India, are feeling the pressure of rising crude oil prices, as higher rates accelerate US dollar outflows, as well as fund withdrawals by foreign portfolio investors.
Meanwhile, US President Donald Trump has said he has halted new attacks on Iran at the request of Qatar, Saudi Arabia, and the UAE, and stressed that serious talks are underway with Tehran that could lead to an acceptable deal.
Trump said Saudi Arabia, Qatar, the UAE, and some others had asked him if the US could postpone it for two or three days, a short period, because they believe they are getting very close to a deal.