The rupee opened on a weak note and depreciated 20 paise to a record low of 95.86 against the US dollar in early trade on Thursday, weighed down by elevated crude prices and concerns over the West Asia crisis.

The rupee has now weakened by more than 6 per cent against the US dollar since the West Asia conflict began, making it Asia’s worst-performing currency so far in 2026.

In a major move aimed at protecting foreign exchange reserves, India raised import duties on gold and silver from 6 per cent to 15 per cent, but traders said the rupee's path will be shaped less by gold and more by crude's trajectory and the West Asia situation.

At the interbank foreign exchange market, the rupee opened at 95.74, then fell further to a record low of 95.86 against the US dollar, registering a fall of 20 paise from its previous close.

The rupee on Wednesday slipped to an all-time low of 95.80 against the US dollar, and settled at 95.66 near its record closing low level.

"From jewellery showrooms to fuel stations, every imported commodity is now carrying a heavier price tag — and the rupee is feeling the weight of it," CR Forex Advisors MD – Amit Pabari said.

Adding to the uncertainty, geopolitical headlines continue to swing market sentiment almost every few hours, Pabari said.

"US President Donald Trump stated that he does not expect China’s help in resolving the Iran conflict, while peace negotiations between Washington and Tehran remain on hold as both sides continue to disagree on key conditions," he added.

Chinese President Xi Jinping on Thursday said that 2026 will be "historic, landmark year" for China-US relations as he welcomed US President Donald Trump at the Great Hall of the People for talks with him.

The leaders of ‌the world's two largest economies are scheduled to have a few rounds of talks on Thursday and Friday.

The visit by President Trump comes amid growing economic and geopolitical uncertainties arising from conflicts in the West East and the subsequent global energy shock that has taken a toll, particularly in Asia.

Xi and Trump are expected to discuss the war in Iran, trade, technology and Taiwan, among other points of contention, during the visit.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.48, down 0.04 per cent.

Brent crude, the global oil benchmark, was trading higher by 0.44 per cent at USD 106.10 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 424.44 points to 75,033.42 in early trade, while Nifty climbed 141.90 points to 23,554.50.

Foreign Institutional Investors offloaded equities worth Rs 4,703.15 crore on Wednesday, according to exchange data.

Published on May 14, 2026