Rupee Slumped To Fresh Record Low Near 97/USD As Rising Brent Crude Prices Rattle Market

The Indian rupee plunged to a fresh all-time low against the US dollar on Wednesday morning, due to growing pressure on the domestic currency by the rising crude oil prices that jumped above $110/b.

The rupee opened at a record low of 96.86 per US dollar compared to Tuesday's closing level of 96.53 per dollar, falling for the seventh straight trading session.

Why is the Domestic Currency Declining?

The ongoing decline in the rupee today is due to global investors becoming cautious amid escalating tensions linked to the Iran conflict, rising US Treasury yields, and continued strength in the US dollar index. The Indian currency has now declined more than 6% so far this year and has become Asia's worst-performing currency in 2026.

According to Trading Economics, "The Indian rupee hovered near record lows as elevated crude oil prices continued to pressure the currency. The rupee remained under strain after falling for a seventh straight session, shedding 2.2% since the Iran conflict escalated in late September. The elevated crude oil prices continued to weigh heavily on India's import bill and inflation outlook."

Global market sentiment also stayed weak as Asian equities traded lower, US stock futures softened, and investors rushed towards safer dollar assets. Rising US Treasury yields further pushed for demand for the greenback.
At the same time, Brent crude prices hovered near the $110-per-barrel mark as the market is now looking forward to the ongoing US-Iran negotiations after US President Donald Trump reportedly paused planned military action against Iran to allow room for diplomatic talks.

For India, which imports a major portion of its crude oil requirements, higher oil prices directly increase dollar demand and put additional strain on the rupee.

Domestic concerns also surged after fuel prices in India were raised again. Petrol and diesel prices were increased by around Rs. 0.9 per litre for the second time within a week, which sparked fears of rising inflation and higher transportation and import costs in various sectors.

"The currency has declined over 6% year-to-date and is Asia's worst-performing unit, battered by persistent capital outflows and worries over the balance of payments strain as the Iran war keeps energy prices on the boil." said by Amit Gupta, Kedia Advisory.

"Technically, USDINR is getting support at 95.60 and below, same could see a test of 95.00 levels, and resistance is now likely to be seen at 96.60, a move above could see prices testing 97.24," he added.

Meanwhile, the Indian stock market also opened lower amid weak global cues. The BSE Sensex opened 394.36 points lower at 74,806.49, while the NSE Nifty 50 slipped 0.68%, to open at 23,457.25.

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