Domestic currency weakened past the 95-per-dollar mark to hit a record low on Thursday due to a sharp rise in global crude oil prices and escalating tensions between the US and Iran. The currency reached an all-time low of 95.07 in early trade and further slipped to an intraday low of 95.126 against the US dollar before settling around 95.20 during the session. This decline was influenced by hawkish signals from US Federal Reserve policymakers, supporting the dollar and increasing US bond yields.
Meanwhile, in 2026 so far, the rupee has depreciated about 5.8 per cent. Crude oil prices continued to climb, building on their highest close in nearly four years, as the US heightened pressure on Iran. Brent crude traded near $120 per barrel after surging more than 6 per cent on Wednesday to its highest level since June 2022. On Thursday, it was around $114.10 per barrel, up about 3 per cent from the previous close.
Similarly, US West Texas Intermediate (WTI) traded above $107 and was last seen at $110.28 per barrel, also up by around 3 per cent. US President Donald Trump stated that the naval blockade of Iran’s ports would not be lifted until a nuclear deal is reached, while Iranian officials have not shown any signs of backing down. This negative sentiment was mirrored in domestic equity markets, with Sensex and Nifty declining nearly 1 per cent in early trade.
