Rupee Hits Fresh Record Low Amid Rising Oil Prices, Forex Outflows

New Delhi, May 14 (KNN) The Indian rupee slipped to a fresh record low on Thursday, weighed down by elevated crude oil prices and continued foreign portfolio outflows amid growing concerns over India’s external balances as the West Asia conflict continues.

The rupee weakened 0.1 percent to 95.8525 against the US dollar, breaching its previous all-time low of 95.7950 recorded on Wednesday. The domestic currency has now declined 1.4 percent this week, hitting record lows in each trading session from Tuesday to Thursday.

Rising Oil Prices Add Pressure On External Balances 

India’s heavy dependence on imported energy has made the rupee particularly vulnerable to the ongoing geopolitical crisis, reported Reuters. 

India imports nearly 90 percent of its crude oil requirements and around 50 percent of its natural gas needs, increasing pressure on the country’s current account as global energy prices remain elevated.

RBI Intervention Limits Further Losses 

State-run banks were seen selling dollars during Thursday’s session, likely on behalf of the Reserve Bank of India, helping limit further losses in the currency. 

The rupee has emerged as Asia’s weakest-performing currency so far in 2026 despite repeated interventions by the central bank through foreign exchange reserves and regulatory measures.

Economists noted that India is facing a third consecutive year of balance of payments pressure, raising expectations of prolonged weakness in the domestic currency. 

Bank of America Global Research said India’s current account deficit could exceed 2 percent of GDP, a level historically considered difficult to sustain over the long term.

Forex Conservation Measures Gain Urgency 

The pressure on the rupee comes as Prime Minister Narendra Modi recently urged citizens to conserve foreign exchange by reducing non-essential imports, while the government has also raised import duties on gold and silver to curb foreign exchange outflows.

(KNN Bureau)