Rupee fell to 96.05 against dollar for the first time
Rupee At Record Low: Today, for the first time, the rupee crossed the level of 96 and fell to a low of 96.14 against the US dollar. A huge fall of 50 paise was seen in it on Wednesday itself. Just a day before this, on Thursday, it had closed at the level of 95.64. This is not just a figure, but an inflation alarm which is going to directly impact your pocket.
The Indian currency is facing huge pressure since the beginning of the year 2026. It was only in December 2025 that the rupee broke the psychological level of 90 for the first time. Now market experts are warning that if the situation does not improve, the price of the dollar may soon touch the level of Rs 100.
Foreign tension increased the heartbeats of Indian market
The biggest reason behind this decline is the geopolitical crisis in the Middle East. The mutual conflict between America, Israel and Iran has frightened the global market. Investors around the world are in fear due to fears of supply disruption in the Hormuz Route. In these war-like situations, investors always look for a safe haven, which they are currently seeing in the US dollar. This huge demand for dollars has taken the dollar index (which measures the strength of the dollar against 6 major currencies of the world) to the level of 99.07. The stronger the dollar becomes in the global market, the more Asian currencies start weakening.
Crude oil becomes the biggest challenge for the economy
India buys more than 85 percent of its crude oil from abroad. In the international market, Brent crude has currently crossed the dangerous level of $ 107 per barrel. Oil becoming expensive means that India will have to spend more dollars to buy it. According to a recent survey by Reuters, the oil production of OPEC countries in the month of April has fallen to the lowest level in the last two decades.
Saudi Aramco CEO Amin Nasser has made it clear that about 100 million barrels of oil is being lost every week due to the stoppage of oil exports from the Strait of Hormuz. In such a situation, it may take time till 2027 for the market to stabilize. Investment bank JP Morgan’s report also says that even if the route opens next month, oil will remain around $100 due to logistics problems.
Crisis deepened due to selling by foreign investors
On one hand, crude oil has increased the import bill, while on the other hand, foreign institutional investors (FIIs) are rapidly withdrawing their money from the Indian stock market. If we look at Wednesday’s figures alone, foreign investors sold shares worth more than Rs 4,700 crore. The value of a currency depends on how many dollars are present in the country’s foreign exchange reserves. When dollars start leaving the market in large quantities, the value of the rupee automatically starts falling.
Inflation has a direct impact on the common man’s pocket.
The general public will have to bear the biggest loss due to this poor condition of the rupee. The wholesale inflation rate (WPI) in the country is already at the highest level in three and a half years. The risk of ‘imported inflation’ has increased due to the dollar becoming expensive. Everything from petrol and diesel to goods coming from outside will become expensive. Prices of LPG, plastic products, mobiles and laptops may increase because they are paid in dollars. Students who are studying abroad or those who are planning to travel abroad will now have to spend more money than before to buy dollars.
Hope of relief from government’s strict action
In view of the continuously worsening situation, Prime Minister Narendra Modi himself has taken charge. Only last week he had appealed to the countrymen to stop wasteful expenditure to save foreign exchange reserves. Along with this demand for economic discipline in the national interest, the government has also increased the tariff on import of precious metals on Tuesday night. Its purpose is to stop the withdrawal of dollars from the country. However, traders still believe that some further decline in the rupee may be seen in the coming days.
Journey of rupee against dollar
| Year | value of one dollar in rupees |
| 1947 | 4 rupees |
| 1983 | 10 rupees |
| 1991 | 20 rupees |
| 1993 | 30 rupees |
| 1998 | 40 rupees |
| 2012 | 50 rupees |
| 2014 | 60 rupees |
| 2018 | 70 rupees |
| 2022 | 80 rupees |
| 2025 | 90 rupees |
| 2026 | 96 rupees |
