The Indian rupee (INR) approached the 96 per US dollar (USD) threshold on Thursday, under pressure from rising crude oil prices and continuous dollar outflows driven by foreign portfolio investor (FPI) sales in domestic equity markets.
The currency recorded an intraday low of 95.96 per USD, marking an all-time closing low of 95.7625, which represents a decline of approximately 6 paise from the previous closing rate of 95.7050. However, intervention from the Reserve Bank of India (RBI) helped the rupee recover from these lows.
The rupee has consistently closed at record lows for four consecutive trading sessions this week. According to Amit Pabari, Managing Director of CR Forex Advisors, the Indian rupee has experienced another significant dip, contributing to a losing streak that has escalated into a full-fledged pressure cycle.
“This situation has transcended mere currency issues; it reflects India’s increasing dependence on imports in an increasingly unstable global environment,” Pabari stated. He noted that since the outbreak of conflict in West Asia, the rupee has depreciated by over 6 percent against the USD, making it the worst-performing currency in Asia for 2026.
The impact of these depreciations is far-reaching, affecting prices of imported goods from jewelry to fuel. “India spent a record $84 billion on gold and silver imports in fiscal year 2026, compared to just $35.5 billion a decade ago. Meanwhile, escalating crude prices have compounded pressure on the country’s balance of payments. When a nation imports more than it exports, the strain inevitably affects the currency,” Pabari concluded.
The article was published on May 14, 2026.
