Rupee crashes to record low of 96.20 against US dollar
Babushahi Bureau
New Delhi, May 18, 2026: The Indian rupee extended its sharp decline on Monday, opening at a record low of 96.20 against the US dollar as escalating tensions in the Middle East and surging crude oil prices rattled global financial markets.
The domestic currency slipped nearly 0.2 per cent from its previous close, continuing a steep downward trend that has seen the rupee weaken by around 5.5 per cent since the regional conflict intensified.
Last week, the rupee crossed the 96-per-dollar mark for the first time in history, touching an intraday low of 96.14 on Friday before settling at 95.97.
Market analysts said rising crude oil prices remain one of the biggest reasons behind the currency’s fall. Brent crude surged to nearly USD 111 per barrel on Monday following reports of an attack on a nuclear power facility in the United Arab Emirates, further heightening fears of wider instability in the Gulf region.
Concerns have also increased after reports that US President Donald Trump is expected to review possible military options against Iran during upcoming discussions, adding to uncertainty in global markets.
The rupee’s continued depreciation has raised concerns over India’s broader economic outlook, especially amid a widening trade deficit, higher import costs and weaker foreign capital inflows.
Economists warn that sustained pressure on the rupee could further increase inflationary risks in India, particularly by making fuel, imports and essential commodities more expensive for consumers and businesses alike.