Indian Rupee Steadies Near Record Low

2026-05-04 03:48 By Mariene Camarillo 1 min. read

The Indian rupee hovered near a record low of 95 per dollar, pressured by elevated oil prices amid the US–Iran conflict and weaker capital inflows into the energy-importing economy.

India imports roughly 85–90% of its oil, so higher crude prices increase demand for dollars.

Brent crude held near $110, its highest in four years, after US launched an operation to safeguard navigation through the Strait of Hormuz and conflicting reports emerged that Iranian forces targeted a US warship after it ignored warnings.

The rupee has faced sustained pressure over the past year as foreign investors continued to sell Indian equities, with net outflows exceeding $19 billion and accelerating sharply in March as oil prices surged.

While the Reserve Bank of India may provide some near-term support by tightening FX position limits, the broader depreciation trend is likely to persist.



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