INR vs USD: Indian rupee falls to fresh record low of 96.20 against US dollar in early trade; details here

Indian rupee, after hitting a fresh record low level of 96.20, was trading around 96.012 as of 9:21 am (IST), compared to 95.97 against the US dollar at the previous market close, according to Investing.com data.

According to a recent Reuters report, the Indian rupee has emerged as the worst performer among the Asian currencies so far in 2026. The domestic currency has lost more than 5% against the US dollar since the beginning of the US-Iran conflict.

Over the last few trading sessions, the Indian rupee has been on a downward trend, weakening 0.87% in the last five trading sessions, as per Investing.com data.

How did Indian government intervene?

The Indian government, with the help of the central bank, the Reserve Bank of India, has taken certain measures to ease the increasing pressure on the rupee by imposing curbs on the import of precious metals, for which the nation pays in US dollars.

This move, along with the capping of net open positions in the currency market for banks in India, has resulted in a positive intervention amid a falling domestic currency rate. Despite the continued intervention, the rupee has been on a downward trend due to several global cues.

On April 10, the RBI implemented its $100 million cap on the net open rupee positions of banks in the forex market in an effort to reduce the risk of banks in case of heightened volatility in the market. This move is also a counter against the increasing rupee volatility during weak global cues, to keep the currency in control and distant from speculative trading.

Apart from this move, the RBI also implemented new restrictions to further reduce speculative trading by restricting banks from offering rupee non-deliverable forwards (NDF) to both resident and non-resident clients.

As per the agency report, the rising global bond yields have weighed down the risk appetite of the forex investors, and with the additional pressure from the rising oil prices, the Indian currency was subject to a sell-off.

Experts from BofA Global Research, in a research note cited by Reuters, said that they are revising the forecast for the weakness in the Indian rupee to 98 per US dollar by the end of the calendar year 2026.

What’s at risk for Rupee next?

Experts said that the rising crude oil prices, stronger dollar rate, and heightened global uncertainty remain the key risks for the Indian currency this week.

“For now, elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the rupee. However, the encouraging sign for markets is that both the government and the RBI have already started taking proactive measures to manage the situation before it becomes more uncomfortable,” Amit Pabari, the managing director of CR Forex Advisors, told PTI.

Crude oil prices were trading 1.76% higher at $111.20 as of 10:22 am (IST) on Monday, compared to $109.26 per bbl at the previous market close, as per Investing.com data.

The heightened dollar demand in the market was due to the rising uncertainty in West Asia and President Donald Trump’s recent push to Iranian authorities to come up with a peace agreement as the conflict entered its 12th week since the beginning in late February.

Bloomberg US dollar spot index (DYX) data showed that the greenback was trading 0.04% higher at 99.321 as of 12:26 am (ET) in the United States, compared to the previous currency market close.