Rupee Plunges to Record Low of 96.17 Against US Dollar

Indian Rupee Hits Fresh Record Low Against US Dollar

The Indian rupee plummeted 20 paise to open at a fresh record low of 96.17 against the US dollar on Monday, 18 May, amid elevated crude oil prices and the ongoing Iran conflict. This move has further weakened risk sentiment and put pressure on global markets.

The rupee has emerged as Asia's worst-performing currency in 2026, declining around 5.5% since the Iran war began on 28 February. This significant drop marks the fifth straight session in which the currency has touched a new all-time low.

The Reserve Bank of India is believed to have intervened on Friday, helping the rupee bounce back above 96, according to Reuters. The central bank has been frequently stepping in to ease the impact of rising oil prices, as reported by Reuters.

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Global market trends also contributed to the rupee's decline. On Monday, the 10-year US Treasury yield increased by four basis points to reach 4.6250%, building on Friday's 14-basis-point surge. Concerns about sustained high oil prices are heightening inflation worries and driving a selloff in Treasuries, with yields in Europe, the UK, and Japan also rising.

Prior to last week, US yields had remained stable within a narrow range since the onset of the Iran conflict, likely indicating hopes for a resolution. However, that situation has shifted, and the 10-year yield is on a significant rise.