The Indian rupee plunged to a historic low against the US dollar on Friday, breaching the 96-mark for the first time ever amid rising crude oil prices, global uncertainty and a strengthening American currency.
In the interbank foreign exchange market, the rupee touched 96.14 against the dollar during intraday trade, marking its weakest level on record. The domestic currency opened at 95.86 on Friday before slipping further during the session. On Thursday, the rupee had closed at 95.64 against the dollar, indicating a sharp decline of nearly 50 paise in a single day.
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So far in 2026, the rupee has weakened by nearly 7 percent against the US dollar.
According to market data from Investing.com, the Indian rupee has emerged as one of the weakest-performing emerging market currencies this year.
Crude oil surge and stronger dollar add pressure on rupee
Forex market analysts said uncertainty linked to the ongoing Iran-Israel conflict in West Asia has increased global demand for the US dollar, which is widely considered a safe-haven asset during geopolitical crises.
At the same time, rising crude oil prices have intensified pressure on import-dependent economies such as India.
India imports more than 85 percent of its crude oil requirements. As the dollar strengthens, the cost of importing oil rises significantly, affecting the country’s trade balance and currency value. On Friday, Brent crude prices rose by around 1.3 percent to cross $107 per barrel.
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Meanwhile, the US Dollar Index, which measures the dollar’s strength against six major global currencies, climbed 0.24 percent to reach 99.05.
Analysts believe the combination of expensive crude oil, continued foreign fund outflows and global economic uncertainty is likely to keep pressure on the rupee in the near term.
