Rupee Slides To Record Low Beyond 95 Against Dollar As Oil Prices Surge

The Indian rupee fell to an unprecedented level on Thursday, breaching the 95 mark against the US dollar as global crude oil prices surged and geopolitical tensions intensified.

In early trade, the currency dropped to 95.07 before weakening further to an intraday low of 95.126. It continued to remain under pressure through the session, trading near 95.20 against the dollar.

The decline comes as the US dollar strengthened following firm signals from policymakers at the Federal Reserve.

The central bank, led by Jerome Powell, kept interest rates unchanged in its latest review, while maintaining a cautious stance that has supported bond yields and the dollar.

So far in 2026, the rupee has weakened by nearly 5.8 per cent, reflecting sustained external pressures.

A key driver behind the currency’s fall has been the surge in crude oil prices.

Global benchmarks have rallied sharply following escalating tensions between the United States and Iran, raising concerns over supply disruptions.

Brent crude remained elevated, trading close to 114 dollars per barrel after a sharp jump in the previous session, while US West Texas Intermediate hovered above 110 dollars per barrel.

The situation has intensified after US President Donald Trump reiterated that restrictions on Iran would remain in place until a nuclear agreement is reached.

Iran, however, has not indicated any shift in its position.

The negative sentiment extended to domestic equities, with both the BSE Sensex and the Nifty 50 slipping nearly 1 per cent in early trading.

Also Read: US–Iran Conflict Drives Fuel Price Surge And Global Supply Concerns