Rupee slides to record low near 97 against US dollar
Babushahi Bureau
New Delhi, May 20, 2026 — The Indian rupee plunged to an all-time low of 96.88 against the US dollar on Wednesday as rising US Treasury yields, firm crude oil prices and continued strength in the American currency weighed heavily on emerging market currencies.
The sharp decline in the rupee has raised concerns over rising import costs, inflationary pressure and increased volatility in financial markets. A weaker rupee makes imports such as crude oil and other essential commodities more expensive for India, potentially impacting domestic prices.
Market analysts said investor sentiment turned cautious after US bond yields surged amid expectations that interest rates in the United States may remain high for a longer period. The yield on the 30-year US Treasury bond reportedly climbed above 5%, nearing levels seen during the period before the 2008 global financial crisis.
The stronger dollar and higher global yields have triggered pressure across several emerging-market currencies, with the Indian rupee among the worst affected during the latest trading session.
Ongoing geopolitical tensions, including uncertainty linked to the Iran situation and fluctuations in global crude oil prices, have further added to pressure on currency markets.