Indian Rupee Hits Record Low of 95.31 Against US Dollar Amid Rising Oil Prices
Rupee closes at fresh low of 95.31 per dollar amid oil price surge
Business StandardImage: Business Standard
The Indian rupee closed at a record low of 95.31 per dollar, down nearly 0.9% due to escalating geopolitical tensions in the Middle East and rising crude oil prices. This decline marks a 5.7% fall against the dollar in 2026, exacerbated by Prime Minister Narendra Modi's austerity remarks urging reduced fuel consumption.
- 01The rupee reached a record low of 95.31 per dollar.
- 02It fell nearly 0.9% in a single day, making it the worst-performing Asian currency.
- 03Geopolitical tensions and rising oil prices are primary factors for the rupee's decline.
- 04India's foreign exchange reserves are around $690.7 billion.
- 05Prime Minister Modi's austerity call adds pressure on the currency.
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The Indian rupee closed at a record low of 95.31 per dollar on Monday, reflecting a nearly 0.9% drop amid rising geopolitical tensions in the Middle East and surging crude oil prices, which reached around $105 per barrel. This decline positions the rupee as the worst-performing currency in Asia, marking a 5.7% decrease against the dollar in 2026. The fall was exacerbated by comments from US President Donald Trump, who deemed Iran's peace proposals 'unacceptable', raising fears of further conflict. Prime Minister Narendra Modi's recent remarks urging citizens to cut fuel use and limit travel to safeguard foreign exchange reserves also contributed to the rupee's weakness. Analysts noted that the rising oil prices have led to increased dollar purchases by importers, putting additional pressure on the currency. As of May 1, India's foreign exchange reserves stood at $690.7 billion, with foreign currency assets at $523.8 billion. The yield on the benchmark 10-year government bond rose by 5 basis points to 7.03%.
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The rupee's decline could lead to increased costs for imported goods, affecting fuel prices and overall inflation in India. Consumers may face higher prices for fuel and other imported products.
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