6 days ago
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The rupee opened connected a anemic enactment and slumped to an all-time debased of 96.25 successful aboriginal commercialized connected Monday (May 18, 2026), arsenic elevated crude lipid prices, planetary uncertainty, and a stronger dollar proceed to stay cardinal risks for the home unit.
Forex traders said higher crude lipid prices, a stronger U.S. dollar, and ongoing geopolitical tensions person unneurotic created a hard situation for emerging marketplace currencies, and the rupee is present intelligibly reflecting that stress.
At the interbank overseas speech market, the rupee opened astatine 96.19, past fell further to 96.25 against the U.S. dollar, registering a autumn of 44 paise from its erstwhile close.
On Friday (May 15, 2026), the Indian rupee crashed beneath the 96/$ mark connected Friday (May 15, 2026) earlier closing astatine an all-time debased of 95.81 against the U.S. dollar.
"For now, elevated crude lipid prices, planetary uncertainty, and a stronger dollar proceed to stay cardinal risks for the rupee. However, the encouraging motion for markets is that some the authorities and the RBI person already started taking proactive measures to negociate the concern earlier it becomes much uncomfortable," CR Forex Advisors MD Amit Pabari said.
“Technically, 94.80–95.10 is expected to enactment arsenic an important enactment portion for USD-INR, portion 96.00–96.50 remains a beardown absorption country successful the adjacent term,” Mr. Pabari added.
The dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading astatine 99.32, higher by 0.04% owed to simmering Iran tensions.
Brent crude, the planetary lipid benchmark, was trading up 1.83% astatine $111.26 per tube successful futures trade.
"With the emergence successful lipid prices to beyond $111.50 per barrel, rupee volition beryllium affected the astir arsenic rising lipid prices increases the outflows of U.S. dollar on with the outflows already happening owed to FPIs," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Meanwhile, wrong days of levying precocious customs duties connected precious metals, the authorities connected Saturday (May 16, 2026) imposed import curbs connected silver by putting the metallic nether a licensed authorities for inbound shipments.
The government, on May 13, hiked import work connected precious metals - gold, and metallic - from 6% to 15%. The effectual work (including 3% IGST) is implicit 18%.
It was hiked to power the outflow of forex by curbing non-essential imports. "Only stoppage of warfare and reopening of the Strait of Hormuz tin bring astir a little request connected the $/rupee pair, other 100 seems to beryllium connected the paper if RBI does not denote immoderate schemes to summation dollar inflow into the country," Mr. Bhansali added.
On the home equity marketplace front, Sensex tanked 833.20 points to 74,404.79 successful aboriginal trade, portion the Nifty was down 234 points to 23,401.70.
Foreign Institutional Investors remained nett buyers for the 2nd consecutive session, purchasing equities worthy ₹1,329.17 crore connected Friday (May 15, 2026), according to speech data.
Meanwhile, India's forex reserves jumped by $6.295 cardinal to $696.988 cardinal during the week ended May 8, the Reserve Bank said connected Friday (May 15, 2026). The wide reserves had dropped by $7.794 cardinal to $690.693 cardinal successful the erstwhile reporting week.
