Rupee falls to record low of 96.90 against USD as US-Iran standoff fuels global inflation fears
ReutersLast updated: May 20, 2026 at 09:34:00 IST
Synopsis
The rupee hit an all-time low against the dollar on Wednesday, driven by rising oil prices resulting from the stalled peace talks between the United States and Iran. This surge in energy costs is fueling inflationary fears, pushing bond yields higher and impacting stocks. The fall in the rupee, coupled with large withdrawals by foreign investors and rising Brent crude prices, is worsening India’s balance of payments deficit.
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ETMarkets.comThe rupee fell to 96.8650 per dollar on Wednesday, eclipsing its previous all-time low of 96.6150 hit in the previous session.THE rupee fell to a record low on Wednesday as the impasse in peace talks between the United States and Iran continues. oil price high, fueling the concernsof a global inflation skyrocket that rose bond yields to multi-year highs and weighed on stocks.
Pupil energy prices and weak capital flows, further strained by rising bond yields, have left India facing a large balance of payments deficit for the current financial year.
The rupee fell to 96.90 per dollar on Wednesday, eclipsing its previous all-time low of 96.6150 hit in the previous session. The currency is down 6% since Iran the war began at the end of February.
Foreign investors withdrew more than $22 billion from local stocks and bonds during the same period, while Brent crude prices jumped more than 50%.
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