Rupee hits record low of 96.14/dollar, settles at fresh closing low of 95.86/dollar

The Indian rupee crashed below the 96/USD mark on Friday (May 15, 2026) before closing at an all-time low of 95.86 (provisional) against the U.S. dollar as elevated crude oil prices and inflation concerns added to the downside pressure on the rupee.

Rupee has registered over 6% losses so far this year, and in the past six trading sessions, it has depreciated nearly 2% as Iran war risk escalation pushed crude oil prices higher. The dollar index moved northwards after strong U.S. retail sales and stable labour market data reduced expectations of aggressive Federal Reserve rate cuts.

Forex traders said global uncertainties, relatively high valuations, and the lack of AI-led investment opportunities have weighed on capital flows.

Moreover, weak net FDI inflows are likely to exert pressure on the balance of payments, while rising crude oil prices stoke inflation worries.

At the interbank foreign exchange, the rupee opened at 95.86, then slumped to a record low of 96.14 in intraday trade, registering a fall of 50 paise from its previous close.

The USD/INR pair finally settled at 95.86 (provisional) against the U.S. dollar, registering a fall of 22 paise from its previous close, helped by likely RBI intervention.

On Thursday (May 14, 2026), the rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.15, higher by 0.34%.

Brent crude, the global oil benchmark, was trading up 3.14% at $109.04 per barrel in futures trade.

On the domestic equity market front, Sensex fell 160.73 points to settle at 75,237.99, while Nifty declined 46.10 points to 23,643.50.

Foreign Institutional Investors turned net buyers, purchasing equities worth ₹187.46 crore on Thursday, according to exchange data.

Meanwhile, the country’s exports in April rose by 13.78% to $43.56 billion despite global challenges, Commerce Secretary Rajesh Agrawal said on Friday.

Imports grew 10 per cent year-on-year to $71.94 billion in April. The trade deficit during the month stood at $28.38 billion.

“We expect the rupee to trade with a negative bias on elevated crude oil prices and inflation concerns. Strong dollar and FII outflows may also weigh on the rupee. However, any intervention by the RBI and hiking of import duty on gold and silver may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 95.60 to 96.20,” said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.

Chinese President Xi Jinping and his U.S. counterpart Donald Trump on Friday (May 15, 2026) hailed their talks as “historic” and “landmark”, as the American leader wrapped up his three-day visit on a high note, but no deals on any contentious issues were announced.

Both Presidents, who held several rounds of talks covering a range of global issues, including the Iran war and bilateral trade frictions, concluded their discussions with a private meeting at Zhongnanhai, the well-guarded compound in Beijing where top leaders reside.