The Indian rupee opened weaker on Thursday and depreciated 20 paise to hit a fresh record low of 95.86 against the U.S. dollar in early trade, pressured by elevated crude oil prices and concerns over the ongoing West Asia crisis.
At the interbank foreign exchange market, the rupee opened at 95.74 and later slipped further to 95.86 against the dollar, marking a fall of 20 paise from its previous close.
The rupee had slipped to an all-time low of 95.80 against the U.S. dollar on Wednesday and settled at 95.66, near its record closing low.
The domestic currency has now weakened by more than 6% against the U.S. dollar since the West Asia conflict began, making it Asia’s worst-performing currency so far in 2026.
The pressure on the rupee comes as Brent crude remained elevated. Brent crude futures were trading higher by 0.44% at $106.10 per barrel. Higher crude prices are a major concern for India as the country depends heavily on imports to meet its energy needs. A rise in crude prices increases the import bill and adds pressure on the currency.
In a major move aimed at protecting foreign exchange reserves, India raised import duties on gold and silver from 6% to 15%. However, traders said the rupee’s near-term direction will depend more on crude oil prices and the West Asia situation than on the gold duty move.
“From jewellery showrooms to fuel stations, every imported commodity is now carrying a heavier price tag and the rupee is feeling the weight of it,” CR Forex Advisors MD Amit Pabari said.
Geopolitical uncertainty also continued to impact sentiment. Pabari said U.S. President Donald Trump has stated that he does not expect China’s help in resolving the Iran conflict, while peace negotiations between Washington and Tehran remain on hold as both sides continue to disagree on key conditions.
Meanwhile, Chinese President Xi Jinping welcomed Trump at the Great Hall of the People for talks, calling 2026 a “historic, landmark year” for China-U.S. relations. The leaders are expected to discuss the Iran war, trade, technology and Taiwan during the visit.
The dollar index was trading at 98.48, down 0.04%. In domestic equities, the Sensex jumped 424.44 points to 75,033.42 in early trade, while the Nifty climbed 141.90 points to 23,554.50.
Foreign Institutional Investors offloaded equities worth Rs 4,703.15 crore on Wednesday, according to exchange data.
Overall, the rupee remained under pressure as high crude prices, foreign fund outflows and uncertainty around the West Asia conflict weighed on sentiment.
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