On Thursday, the Indian rupee fell to a record low of 95.33 per dollar, declining 0.5% as rising crude oil prices raised concerns about inflation and economic growth in India, a net energy importer. The surge in Brent crude oil prices to $126.4 per barrel has exacerbated the rupee's depreciation, which has already seen a decline of over 5% in 2026. This drop has wiped out gains from the Reserve Bank of India's recent currency-supportive measures, leaving the rupee flat month-on-month. Analysts note that persistent weakness in the rupee could lead to a negative feedback loop affecting foreign capital flows and increasing inflationary pressures. Foreign investors have offloaded over $20 billion in Indian stocks and bonds in March and April, nearly double the total outflows from 2025. With the rupee breaking the psychologically significant level of 95.0, analysts from Barclays warn of further depreciation, potentially reaching 96.80 by the end of the year. The situation is compounded by a hawkish U.S. Federal Reserve policy, which adds strain to the currency amid rising oil prices.