Rupee falls to 96.60 in intraday trade; settles at all-time low of 96.52/$

The rupee slipped to a record low of 96.60 against the US dollar before settling at 96.52 (provisional) on Tuesday, weighed down by soaring crude oil prices, persistent foreign capital outflows, and a resilient dollar buoyed by global risk-aversion.

The rupee is Asia’s worst-performing currency in 2026, having tumbled to a historic intraday low of 96.60 against the US dollar. The currency has depreciated 1.5 per cent this month and more than 7 per cent this year.

Forex traders said the rupee remains vulnerable to rising crude oil prices and the closure of the Strait of Hormuz.

At the interbank foreign exchange market, the rupee opened at 96.38 against the US dollar, then lost further ground and touched a record low of 96.60, before settling at 96.52 (provisional), registering a fall of 32 paise over its previous close.

On Monday, the Indian rupee settled at a record low of 96.20 against the US dollar.

“We expect the rupee to trade with a negative bias amid a strong dollar and rising US treasury yields. Ongoing geopolitical tensions and FII outflows may also put pressure on the rupee.

“However, any intervention by the RBI and certain restrictions on the import of gold and silver may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 96 to 96.60,” said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.24, higher by 0.05 per cent due to simmering Iran tensions.

Brent crude, the global oil benchmark, was trading down 1.92 per cent at $109.95 per barrel in futures trade. Moreover, emerging market economies, including India, continue to feel the pressure of rising crude oil prices, as elevated rates accelerate the outflows of US dollars, along with the withdrawals of funds by foreign portfolio investors, traders said. Meanwhile, US President Donald Trump has said he halted fresh strikes on Iran at the request of Qatar, Saudi Arabia and the UAE, asserting that serious discussions were underway with Tehran that could lead to an acceptable deal. Trump said he was asked by Saudi Arabia, Qatar, the UAE and some others if the US could put it off for 2 or 3 days, a short period of time, because they think that they are getting very close to making a deal.

On the domestic equity market front, Sensex declined 114.19 points to settle at 75,200.85, while Nifty dipped 31.95 points to 23,618.

Foreign Institutional Investors remained net buyers for the third straight session, purchasing equities worth Rs 2,813.69 crore on Monday, according to exchange data.