Mumbai: 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 oil prices and concerns over the West Asian crisis.
The rupee has now weakened by more than 6 percent against the US dollar since the start of the West Asian conflict, making it Asia’s worst-performing currency so far in 2026.
In a major move aimed at protecting foreign reserves, India raised import duties on gold and silver from 6 percent to 15 percent, but traders said the rupee’s path will be shaped less by gold and more by the trajectory of crude oil and the situation in West Asia.
In 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 decline of 20 paise from the previous close.
The rupee on Wednesday hit an all-time low of 95.80 against the US dollar and settled at 95.66 near a record closing low.
“From jewelery showrooms to petrol stations, every imported commodity now carries a heavier price – and the rupee is feeling the brunt,” said MD CR Forex Advisors – Amit Pabari.
Adding to the uncertainty, geopolitical headlines continue to swing market sentiment almost every few hours, Pabari said.
“US President Donald Trump said he does not expect China’s help in resolving the Iran conflict, while peace negotiations between Washington and Tehran remain on hold as the two sides continue to disagree on key terms,” he added.
Chinese President Xi Jinping said on Thursday that 2026 will be a “historic, historic year” for China-US relations as he welcomed US President Donald Trump to the Great Hall of the People for talks with him.
The leaders of the world’s two largest economies are scheduled to hold several rounds of talks on Thursday and Friday.
President Trump’s visit comes amid growing economic and geopolitical uncertainties arising from conflicts in the West East and the subsequent global energy shock that has taken its toll, particularly in Asia.
Xi and Trump are expected to discuss the Iran war, trade, technology and Taiwan, among other points of contention, during the visit.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded at 98.48, down 0.04 percent.
Brent crude, the global oil benchmark, traded 0.44 percent higher at $106.10 a barrel in futures trade.
On the domestic equity market front, the Sensex jumped 424.44 points to 75,033.42 in early trade, while the Nifty rose 141.90 points to 23,554.50.
Foreign institutional investors dumped shares worth Rs 4,703.15 crore on Wednesday, according to exchange data.
