The Rupee on Tuesday opened at a record low of 95.30 per US Dollar against previous record closing low of 95.09, weighed down by the continuing war in West Asia and rising global crude oil prices due to blockade of the Strait of Hormuz.

In intraday trading so far, the Rupee hit a high/low of 95.28/ 95.4375 per US Dollar, per CCIL data. The Indian currency is currently trading at 95.3625.

With the fragile ceasefire between the US and Iran coming under strain on Monday in the wake of exchange of fire near the Strait of Hormuz, Brent crude is currently trading at $114 per barrel.

Amit Pabari, MD, CR Forex Advisors, said “India imports the majority of its crude. So, when oil rises this sharply, it directly increases dollar demand. Importers rush in, hedging picks up, and suddenly the pressure builds not gradually, but all at once. Add to that the unwinding of maturing NDF positions, and you get a perfect storm of dollar demand.”

He opined that when oil is rising fast, defending the rupee becomes an expensive exercise — It’s like trying to hold an umbrella steady in a storm that keeps getting stronger.

Published on May 5, 2026