Rupee Hits Record Low Past 95 Per Dollar as Crude Prices Surge
MUMBAI, India — The rupee weakened past the 95-per-dollar mark Thursday, hitting a record low as a sharp rise in global crude oil prices added pressure on India’s currency.
The rupee touched an all-time low of 95.07 in early trade and later slipped to an intraday low of 95.126 against the U.S. dollar. It weakened further to about 95.20 during the session.
The decline came as crude prices surged amid escalating tensions between the United States and Iran, raising concerns about supply disruptions and India’s import bill. Higher oil prices typically weigh on the rupee because India imports a large share of its crude requirements.
The currency was also pressured by hawkish signals from U.S. Federal Reserve officials, which supported the dollar and pushed U.S. bond yields higher. The Federal Reserve, led by Chair Jerome Powell, kept benchmark interest rates unchanged at its latest policy meeting.
So far in 2026, the rupee has depreciated about 5.8%.
Brent crude hovered near $120 per barrel after jumping more than 6% Wednesday to its highest level since June 2022. On Thursday, Brent was trading around $114.10 per barrel, up about 3% from the previous close.
U.S. West Texas Intermediate crude traded above $107 and was last seen at $110.28 per barrel, also up about 3%.
The rally followed intensified U.S. pressure on Iran. Washington has signaled no easing of its naval blockade and moved to seize tankers linked to Tehran, fueling fears of prolonged supply disruption.
U.S. President Donald Trump said he would not lift the naval blockade of Iran’s ports until a nuclear deal is reached, while Iranian officials have not indicated they are prepared to step back.
The pressure also weighed on Indian equities, with the Sensex and Nifty falling nearly 1% in early trading. (Source: IANS)
