Mumbai

The Indian rupee plunged to a fresh all-time low against the US dollar on Tuesday, slipping to 96.60 during intraday trade before ending at a record closing level of 96.52, amid mounting pressure from elevated crude oil prices, foreign fund outflows and persistent geopolitical uncertainty.

At the interbank foreign exchange market, the rupee opened at 96.38 per dollar and weakened further through the session, touching an unprecedented low of 96.60. It eventually settled provisionally at 96.52, down 32 paise from Monday’s close of 96.20.

The rupee has now emerged as Asia’s weakest-performing currency in 2026, declining over 7 per cent since the beginning of the year and around 1.5 per cent this month alone.

Forex market participants attributed the sharp depreciation primarily to surging global crude oil prices and concerns surrounding the continued closure of the Strait of Hormuz, a critical route for global oil shipments.

Analysts said the strengthening US dollar and rising US treasury yields also contributed to pressure on emerging market currencies, including the rupee.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee was likely to remain under pressure due to ongoing geopolitical tensions and foreign institutional investor outflows, although possible intervention by the Reserve Bank of India could provide support at lower levels.

He added that restrictions on gold and silver imports may also help stabilise the domestic currency.

The dollar index, which measures the US currency against a basket of six major currencies, was trading marginally higher at 99.24 amid global risk aversion linked to tensions involving Iran.

Meanwhile, Brent crude futures were trading near USD 110 per barrel despite some easing during the session. Traders noted that high energy prices were accelerating dollar outflows from oil-importing nations such as India.

Global sentiment remained cautious after US President Donald Trump said he had temporarily halted fresh strikes on Iran following requests from Gulf nations including Saudi Arabia, Qatar and the UAE, amid ongoing diplomatic negotiations with Tehran.

On the domestic equity front, the benchmark Sensex ended 114.19 points lower at 75,200.85, while the Nifty declined 31.95 points to close at 23,618.

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Despite the weak rupee, foreign institutional investors remained net buyers for the third consecutive session, purchasing equities worth Rs 2,813.69 crore on Monday, according to exchange data.