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%.