The Indian rupee has depreciated to a record low of 95.32 against the US dollar, primarily influenced by a sharp increase in Brent crude oil prices, which have risen approximately 7% to $126 per barrel. This surge in oil prices is expected to inflate India's import bill, widen the current account deficit, and exacerbate foreign capital outflows. Analysts highlight a feedback loop where rising oil prices increase dollar demand from importers while foreign institutional investors continue to sell off Indian assets, intensifying the rupee's decline. The Reserve Bank of India (RBI) is intervening to manage volatility but is not committed to defending a specific exchange rate, suggesting a bias towards further depreciation. Additionally, the US Federal Reserve's hawkish stance on interest rates adds pressure, making emerging market currencies like the rupee less attractive. Analysts predict that if oil prices remain high, the rupee could test levels of 96 and 97, while support is seen around 94.80.