Indian Rupee Touches Record Low Of 96.17 Against US Dollar As Crude Oil Prices Surge

The Indian rupee opened weaker on Monday, 18 May, slipping 20 paise to 96.17 against the US dollar. This opening level marked a new record low for the currency, as investors reacted to higher crude oil prices and persistent worries linked to the Iran conflict.

Monday’s move extended a losing streak for the rupee, which has now touched fresh all-time lows for five straight sessions. Since the Iran war began on 28 February, the currency has dropped about 5.5% in 2026, making the rupee Asia's worst-performing currency so far this year.

Indian rupee record low against US dollar and global risk sentiment

Market participants noted that elevated crude oil benchmarks, driven by disruption risks from the Iran conflict, have added pressure on import-dependent economies such as India. Higher oil costs tend to widen the current account deficit and weigh on domestic inflation, which often dampens appetite for currencies like the rupee.

"The rupee fell to a low of 96.15 on Friday after Oil prices rose but closed at 95.9650, its lowest close, after RBI stepped in to control the depreciation. With the rise in dollar index due to simmering Iran tensions the dollar Index has risen to 99.36 levels while Asian currencies are all down against the dollar," said Anil Kumar Bhansali of Finrex Treasury Advisors.

"With the rise in oil prices to beyond $ 111.50 per barrel rupee will be affected the most as rising Only stoppage of war and reopening of the Strait of Hormuz can bring about a lower demand on the $/rupee pair else 100 seems to be on the card if RBI does not announce any schemes to increase dollar inflow into the country."

Traders pointed out that risk sentiment across global markets has stayed fragile as the conflict in Iran continues. Investors have shifted towards safe-haven assets, lifting the US dollar index. That move has further dragged down emerging market currencies, with the Indian rupee particularly affected during 2026.

The rupee’s recent performance against the US dollar and related market metrics can be summarised as follows:

Indicator	Value
Opening level on 18 May 2026	96.17 per US dollar
Change from previous close	Depreciation of 20 paise
Year 2026 fall since 28 February	Approximately 5.5%
Consecutive sessions at record low	5 sessions

Indian rupee coverage and analysis by Dhanya Nagasundaram

Coverage of movements in the Indian rupee, along with broader financial markets, is part of the work handled by Dhanya Nagasundaram at LiveMint. Dhanya is a Content Producer who focuses on news about stocks, policy actions, economic trends, and business developments that matter to investors.

Dhanya has more than eight years of experience in journalism and content production, with a strong focus on data-led reporting and market analysis. At LiveMint, Dhanya prepares stories that explain complex financial topics in clear language, helping readers understand how events influence investment decisions.

Dhanya regularly tracks equity markets, commodities, and key macroeconomic indicators, including developments that move the Indian rupee and related asset classes. Coverage often highlights shifts in sectors, primary market activity such as initial public offerings, quarterly earnings, and investment strategies for both retail and institutional participants.

Before joining LiveMint, Dhanya worked with organisations such as MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These roles helped build a base in financial research, corporate analysis, and market-focused writing, which supports current reporting on currencies, including the rupee’s trading pattern against the US dollar.

Across Dhanya’s career, topics have included trading approaches, commodities, IPOs, wealth creation, corporate profitability, and macroeconomic shifts. This mix of newsroom and corporate experience supports detailed yet accessible coverage of movements in the Indian rupee, ensuring readers receive reliable information on how global and domestic events connect to markets.