The Indian rupee has fallen to a record low of 95.3250 against the US dollar, a decline of 0.5% on Thursday. This drop is largely attributed to rising crude oil prices, which have surged to $126 per barrel, the highest in four years. The rupee's depreciation has erased gains from recent currency-supportive measures by the Reserve Bank of India (RBI), leading to speculation about further interventions. The currency has now declined nearly 6% in 2026, adding to a similar drop from the previous year, amid ongoing economic pressures including trade tensions with the U.S. and significant energy supply disruptions. Analysts warn that the persistent weakness of the rupee could deter foreign investment and exacerbate inflation by increasing import costs. In March and April alone, foreign investors have offloaded over $20 billion in Indian stocks and bonds, nearly doubling the outflows of $11.8 billion recorded for all of 2025. Economic growth forecasts have also been adjusted, with HSBC projecting a slowdown to 6.3% if oil prices stabilize around $80 per barrel.