Indian Rupee Reaches Record Low of 95.80 Against U.S. Dollar

On May 13, 2026, the Indian rupee plunged to its lowest intraday level of 95.80 against the U.S. dollar, marking a significant decline that has persisted for four sessions. Analysts attribute this downturn mainly to elevated crude oil prices and ongoing concerns regarding global trade disruptions, particularly related to the crisis in West Asia. In response to the escalating oil prices, the Indian government announced an increase in import duties on gold and silver from 6% to 15%. This move aims to reduce the demand for these metals and alleviate pressure on India's foreign exchange reserves. However, experts believe this may not substantially decrease the demand for the U.S. dollar, a safe-haven currency. During the trading session, the rupee fell by 21 paise and reached a high of 95.51 against the dollar, after opening slightly higher at 95.52. Over the past three days, the rupee has experienced a total decline of 96 paise from its closing value of 94.22 against the dollar on May 7. Anuj Choudhary, a research analyst at Mirae Asset ShareKhan, noted, "The rupee is at a record low due to surging crude prices and inflation concerns. The stalemate in U.S.-Iran peace talks has created risk aversion in global markets." He predicts that the USD-INR spot price will fluctuate between ₹95.45 to ₹96.15. Furthermore, the dollar index, which measures the dollar's strength against a basket of other currencies, was reported at 98.46, showing an increase of 0.29%. In the commodities market, Brent crude oil futures were seen trading slightly lower at $107.73 per barrel, down by 0.22%. In the domestic equity market, the Sensex increased by 79.50 points to reach 74,638.74, whereas the Nifty rose by 39.50 points to 23,419.05. On the foreign institutional investor front, data indicated a sell-off of equities worth ₹1,959.39 crore on May 12. Recent figures also revealed an increase in retail inflation, which reached 3.48% in April, primarily driven by rising costs of gold and silver jewellery and essential food items, according to government data. The Consumer Price Index-based inflation recorded values of 3.40% in March, 3.21% in February, and 2.74% in January.