On Thursday, the Indian rupee hit a record low of 95.23 against the US dollar, down 0.4% for the day. This drop surpassed its previous low of 95.21 from late March. The rupee's decline is primarily due to persistently high energy prices and a hawkish tilt from the U.S. Federal Reserve, which has intensified investor concerns about India's economic stability. So far this year, the currency has depreciated by over 5%, compounding a similar decline from the previous year. Ongoing challenges such as trade tensions with the U.S., weak capital flows, and significant energy supply disruptions have further pressured the rupee. The sustained weakness of the currency could negatively impact foreign capital inflows, erode returns for overseas investors, and contribute to rising inflation by increasing import costs.