The Indian rupee fell by 39 paise to an all-time low of 95.23 (provisional) against the US dollar on Monday, amid rising tensions in West Asia that are contributing to volatility in global markets, thereby keeping oil prices elevated and heightening concerns about inflation and economic slowdown.
Forex traders noted that Brent oil prices are hovering around $110 per barrel, exerting pressure on oil-importing nations such as India. Additionally, persistent foreign capital outflows, linked to increased geopolitical uncertainties, have further dampened investor sentiment.
In the interbank foreign exchange market, the rupee opened at 94.95 against the dollar but lost ground throughout the trading day, ultimately settling at 95.23 (provisional), which marks a decline from its previous close of 94.84.
The rupee’s decline follows market closures on Friday due to Maharashtra Day. “The Indian rupee has set a record low as the dollar strengthens and crude oil prices remain stable. The continuous rise in oil prices, coupled with foreign fund withdrawals, is visibly straining India’s trade balance and broader economic outlook,” commented Dilip Parmar, Senior Research Analyst at HDFC Securities.
Additionally, the dollar index, which measures the currency’s performance against a basket of six others, was trading at 98.26, up 0.11 percent. Brent crude saw an increase of 1.37 percent, reaching $109.65 per barrel in futures trading.
Investor focus also turned to the counting of votes for the West Bengal state elections, according to a note from IFA Global. A victory for the Bharatiya Janata Party (BJP) could have a positive impact on domestic assets, though the effect may be short-lived due to the ongoing influence of global geopolitics on supply chains and industry.
In the domestic equity markets, the Sensex rose by 355.90 points to close at 77,269.40, while the Nifty increased by 121.75 points to reach 24,119.30. Foreign Institutional Investors sold equities worth ₹8,047.86 crore on Thursday, according to exchange data.
Furthermore, Expenditure Secretary V Vualnam indicated that the upcoming quarters and the following year may face “a lot of stress points.” He acknowledged the reality of fiscal stress while emphasizing the importance of maintaining capital expenditures at the budgeted level, during his remarks at the ICPP Growth Conference hosted by Ashoka University.
Published on May 4, 2026.
