--- title: "Indian rupee hits record low as outflows, oil strain worsen rout" type: "News" locale: "en" url: "https://longbridge.com/en/news/286241544.md" description: "The Indian rupee has hit a record low of 95.7950 per dollar, driven by overseas debt repayments and importer-hedging demand, despite limited support from tax increases on gold and silver imports. The ongoing U.S.-Iran conflict has negatively impacted India's macroeconomic outlook, leading to lowered growth forecasts and increased inflation projections. Analysts suggest that a significant recovery in the rupee will require a drop in oil prices or a resumption of portfolio flows. The Reserve Bank of India may consider further measures to stabilize the currency, although rate hikes are seen as a last resort." datetime: "2026-05-13T10:21:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286241544.md) - [en](https://longbridge.com/en/news/286241544.md) - [zh-HK](https://longbridge.com/zh-HK/news/286241544.md) --- # Indian rupee hits record low as outflows, oil strain worsen rout By Jaspreet Kalra MUMBAI, May 13 (Reuters) - The Indian rupee weakened to an all-time low on Wednesday, extending its losing streak, as overseas debt repayments and importer-hedging demand ‌outweighed limited support from New Delhi raising taxes on gold and silver shipments. The ‌rupee weakened to 95.7950 per dollar, edging past its previous low of 95.7375 hit just a day earlier. The energy ​shock from the prolonged U.S.-Iran war that has effectively shut the Strait of Hormuz has hurt India's macroeconomic outlook and strained its current account balance. Economists have lowered their growth forecasts, raised inflation projections and warned of sustained pressure on the rupee. The currency, which ended down 0.1% at 95.7050 ‌per U.S. dollar, has fallen more ⁠than 5% since the Iran war began, making it Asia's worst-performing currency this year. Analysts say the losses would have been steeper had it not ⁠been for the central bank's frequent market interventions and rare regulatory curbs. "A collapse in oil prices or a resumption in portfolio flows are prerequisites for a durable turnaround in the rupee's bearish run," ​Radhika Rao, ​senior economist at DBS, said in a note. Brent ​crude prices have risen nearly 50% ‌since the war erupted at February end. India, the world's third-largest oil importer and consumer, meets more than 90% of its crude oil needs and about half of its natural gas demand through imports. Prime Minister Narendra Modi has urged a range of measures to conserve foreign exchange reserves, while the federal government has hiked tariffs on precious metal imports. "The Reserve Bank of India ‌may still enact further measures in the weeks ahead, ​though we still think that hiking rates to defend ​the INR will remain a last resort," ​analysts at Barclays said, maintaining their year‑end USD/INR forecast at 96.80. RBI Governor Sanjay ‌Malhotra said on Tuesday that India's monetary ​policy can look through ​temporary supply shocks but the central bank may need to act if inflationary pressures become entrenched. While India has so far kept fuel prices unchanged, the government may need ​to raise them if the conflict ‌drags on, Malhotra said. Global markets traded cautiously while currencies were largely rangebound. Technology-sensitive ​shares gained as AI optimism dwarfed concerns over stalled Washington-Tehran negotiations. (Reporting by Jaspreet ​Kalra; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala) ### Related Stocks - [NDIA.AU](https://longbridge.com/en/quote/NDIA.AU.md) - [IND.US](https://longbridge.com/en/quote/IND.US.md) - [D05.SG](https://longbridge.com/en/quote/D05.SG.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) ## Related News & Research - [India proposes interim cash settlement to boost liquidity in agri derivatives](https://longbridge.com/en/news/286101833.md) - [Indian Shares Likely To Drift Lower On Bond Market Jitters](https://longbridge.com/en/news/286994741.md) - [IPL 2026: Kuldip, Gleeson named injury replacements for Khaleel-Thushara](https://longbridge.com/en/news/286585285.md) - [Oil little changed as traders await breakthrough in US.-Iran negotiations](https://longbridge.com/en/news/286925961.md) - [Russian SMEs struggle as war, taxes, and oil losses mount](https://longbridge.com/en/news/286910355.md)