Mumbai: The Indian rupee extended its losses on Monday and settled at a fresh record low of 96.35 against the US dollar in provisional closing trade, weighed down by rising crude oil prices, persistent geopolitical tensions and continued strength in the American currency.
Currency market participants said investor sentiment remained under pressure globally due to ongoing tensions involving the United States and Iran, while higher oil prices continued to strain emerging market economies, including India.
Rupee slides further in volatile trading session
At the interbank foreign exchange market, the rupee opened weaker at 96.19 against the dollar and slipped further during the session to touch 96.39.
The domestic currency eventually ended the day at 96.35 on a provisional basis, marking a decline of 54 paise compared with the previous close.
The latest fall came after the rupee had breached the 96-per-dollar level on Friday before closing at what was then an all-time low of 95.81 against the US currency.
Forex traders said elevated crude oil prices were increasing dollar outflows from India, adding to the pressure already being exerted by foreign portfolio investor outflows.
Geopolitical tensions and rising yields weigh on sentiment
Market experts noted that global uncertainty linked to tensions between the US and Iran continued to dampen overall market confidence.
According to traders, rising US treasury yields and sustained demand for the dollar also contributed to the weakness in the Indian currency.
“We expect the rupee to trade with a negative bias amid a strong dollar and rising US treasury yields. Ongoing geopolitical tensions and FII outflows may also pressure the rupee,” said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan.
He added that possible intervention by the Reserve Bank of India and recent restrictions on imports of gold and silver could offer some support to the rupee at lower levels.
“USDINR spot price is expected to trade in a range of 96 to 96.60,” Choudhary said.
Dollar index eases slightly, Brent crude climbs
The dollar index, which measures the strength of the US dollar against a basket of six major currencies, was trading at 99.14, down 0.14 per cent.
Meanwhile, Brent crude futures, regarded as the global benchmark for oil prices, rose 0.65 per cent to USD 109.97 per barrel.
FII inflows continue despite market pressure
Foreign Institutional Investors remained net buyers for the second consecutive trading session, purchasing equities worth Rs 1,329.17 crore on Friday, according to exchange data.
Separately, India’s foreign exchange reserves recorded a sharp rise during the week ended May 8.
Data released by the Reserve Bank of India on Friday showed that forex reserves increased by USD 6.295 billion to reach USD 696.988 billion. In the previous reporting week, reserves had fallen by USD 7.794 billion to USD 690.693 billion.
Government tightens precious metal imports
The Centre has also moved to curb non-essential imports in an effort to reduce foreign exchange outflows.
Days after increasing customs duties on precious metals, the government on Saturday imposed import restrictions on silver by placing inbound shipments of the metal under a licensed regime.
Earlier, on May 13, the government raised import duties on gold and silver from 6 per cent to 15 per cent. Including the 3 per cent Integrated Goods and Services Tax, the effective duty now exceeds 18 per cent.
Officials said the move was aimed at controlling forex outflows by discouraging non-essential imports such as precious metals.
Agency inputs
Published: 18 May 2026, 07:02 pm IST
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