Rupee Crashes To Record 95.80 Against USD, Settles Near All-Time Low At 95.67

The Indian rupee plunged to a fresh all-time intraday low of 95.80 against the US dollar on Wednesday , before settling marginally higher at 95.67 , as persistent pressure from elevated crude oil prices , West Asia geopolitical tensions , and a strong US dollar weighed on sentiment in the forex market.

Forex traders said the currency remained under stress due to the combined impact of global risk aversion and rising energy costs , even as expectations of lower dollar demand from import curbs provided limited support. The rupee had opened at 95.52, briefly recovering from its previous closing low, but volatility persisted throughout the session, with the pair moving between 95.51 and 95.80 .

Market participants noted that possible Reserve Bank of India (RBI) intervention helped prevent sharper losses, while the government’s recent move to raise import duty on gold and silver to 15 per cent from 6 per cent also supported efforts to curb foreign exchange outflows. The policy change is aimed at reducing imports of precious metals, which are among India’s major import items and exert pressure on reserves.

Despite these measures, the rupee continues to remain under strain and has emerged as the worst-performing Asian currency this year , with a depreciation of over 6 per cent so far in 2026 , traders said. They added that sustained crude oil prices and geopolitical risks in West Asia remain the key drivers of weakness.

According to analysts, the outlook for the rupee will depend largely on the trajectory of crude oil prices and developments in global geopolitical tensions. Brent crude hovered around USD 107.30 per barrel , even as it eased marginally after recent gains, with concerns over shipping disruptions and supply dynamics keeping prices elevated.

On the macroeconomic front, retail inflation rose to 3.48 per cent in April , up from 3.40 per cent in March, driven partly by higher prices of gold, silver jewellery, and select food items . Food inflation also climbed to 4.20 per cent , adding to concerns over price stability.

In equity markets, domestic indices showed resilience, with the Sensex rising 49.74 points to 74,608.98 and the Nifty gaining 33.05 points to 23,412.60 . However, foreign institutional investors continued to remain net sellers, offloading equities worth ₹1,959.39 crore in the previous session.

The US dollar index rose 0.22 per cent to 98.51 , further strengthening the greenback and adding pressure on emerging market currencies, including the rupee. Analysts expect the USD/INR pair to trade in a volatile range, with support from RBI intervention but continued downside risk from global factors.