The Indian rupee opened at a record low of 96.86 against the US dollar on May 20, marking a 33 paise decline from the previous session's close of 96.53. This drop is part of a troubling trend, with the rupee having fallen more than 7% since the beginning of the year, making it the worst-performing emerging Asian currency. The decline is largely driven by a surge in global bond yields and persistently high Brent crude oil prices, which are currently around $111 per barrel. The rupee's performance has been further impacted by geopolitical tensions, particularly the ongoing conflict in Iran, which has contributed to a 5.7% decline since the war began. Analysts note that the recent increase in US treasury yields, with the 10-year yield surpassing 4.5%, reflects concerns over inflation and potential Federal Reserve interest rate hikes. As a result, the rupee faces significant pressure from both external market forces and domestic demand for dollars, complicating its outlook amid these challenging conditions.