Rupee slides to all-time low of 96.40 against dollar on crude oil concerns

The Indian rupee fell to an all-time low of 96.40 against the US dollar on Tuesday (May 19), extending its recent slide as elevated crude oil prices and geopolitical tensions in West Asia continued to weigh on investor sentiment.

At the interbank foreign exchange market, the rupee opened at 96.38 per dollar, down 18 paise from its previous close, before slipping further to touch an all-time low of 96.40.

The domestic currency had already ended Monday’s (May 18) session at a record closing low of 96.20 against the greenback.

Forex traders said the rupee remains under pressure due to concerns over rising oil prices and fears that any disruption or closure of the Strait of Hormuz could impact India’s trade flows with Gulf nations, especially crude imports and exports.

“The market’s biggest challenge right now is not just direction, but confidence. Until there is visible cooling in global tensions and stability in foreign flows, the rupee may continue trading under pressure with volatility staying elevated,” said Amit Pabari, Managing Director at CR Forex Advisors.

He added that while the 94.80–95.10 range is expected to act as a key support zone for the dollar-rupee pair, the currency market is shifting focus toward the 97-per-dollar mark amid persistent global risks.

The dollar index, which measures the US currency against a basket of six major peers, traded slightly lower at 99.10. However, risk sentiment across global markets remained fragile due to ongoing Iran-related tensions.

Meanwhile, Brent crude futures were trading near $110 per barrel despite a marginal decline in early Asian trade. Higher crude prices are seen as a major negative for India, which imports a large share of its oil requirements.

-With PTI inputs