Rupee Hits Record Low of 95.86 Against US Dollar Amidst Crisis

The Indian rupee has fallen to a record low of 95.86 against the US dollar as of May 14, 2026. This marks a 20 paise decline from its previous close, reflecting pressures from elevated crude oil prices and ongoing geopolitical tensions, particularly in West Asia.

As per reports, the currency's decline is the most significant since the onset of the West Asia conflict, contributing to an over 6% depreciation since the situation escalated, making it the poorest-performing currency in Asia for the year 2026.

In a bid to stabilise the currency and protect foreign exchange reserves, the Indian government has increased import duties on gold and silver from 6% to 15%. However, market analysts suggest that the rupee's trajectory will likely be influenced more by crude oil prices and the developments in West Asia than by precious metal imports.

The rupee initially opened at 95.74 against the dollar before reaching the historic low. On the previous day, it had already slipped to 95.80 before settling at 95.66.

Amit Pabari, Managing Director of CR Forex Advisors, stated, "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." This reflects broader economic concerns facing Indian consumers amid the currency's decline.

Simultaneously, geopolitical developments are amplifying market volatility. US President Donald Trump has indicated that he does not anticipate China's assistance in resolving the Iran conflict, with negotiations between the United States and Iran currently stalled amid disagreements.

In contrast, Chinese President Xi Jinping recently marked 2026 as a potential landmark year for China-U.S. relations, as he welcomed President Trump in discussions that could range from trade and technology to tensions surrounding Taiwan.

Among ongoing economic fluctuations, the dollar index was noted at 98.48, down 0.04%, while Brent crude oil was priced at $106.10 per barrel, reflecting a minor increase of 0.44% in futures trading. On the stock market front, the Sensex rose by 424.44 points, bringing it to 75,033.42 points, while Nifty climbed by 141.90 points to reach 23,554.50 points. Meanwhile, Foreign Institutional Investors have reportedly offloaded equities amounting to ₹4,703.15 crore in the previous trading day.