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Thu, 10 Sept 2026
08:49:06 pm
Thu, 10 Sept 2026
08:49:06 pm
Rudransh Sangwan
Published at: May 10, 2026, 11:27 AM
Synopsis
The Indian Rupee remains under pressure near record lows as India’s forex reserves dropped sharply by $7.79 billion to $690.69 billion. The rupee last closed at ₹94.47 against the US Dollar amid elevated crude oil prices, persistent FII outflows, and ongoing US-Iran geopolitical tensions. Analysts expect continued volatility in the INR/USD pair as markets closely track RBI intervention, crude oil prices, and global macroeconomic developments.
The Indian Rupee is expected to remain under pressure heading into the new trading week as concerns over falling forex reserves, elevated crude oil prices, and geopolitical tensions continue to weigh on sentiment.
Since today is Sunday, May 10, 2026, the interbank foreign exchange market remains closed. The rupee’s latest reference level is based on Friday’s closing session.
| Particulars | Value |
|---|---|
| Latest Closing Rate | ₹94.47 per USD |
| Day’s Movement | Rupee recovered slightly |
| Recent Record Low | ₹95.43 per USD |
| Market Status Today | Closed (Weekend) |
Currency trading will officially resume on Monday, May 11.
Although the rupee recovered modestly on Friday, it still remains close to historic lows after recent sharp volatility triggered by:
The currency recently touched an all-time intraday low of ₹95.43 against the US Dollar.
One of the biggest developments impacting the rupee came from the Reserve Bank of India’s latest forex reserve data.
| Particulars | Amount |
|---|---|
| Current Forex Reserves | $690.69 billion |
| Weekly Decline | $7.79 billion |
The sharp decline indicates aggressive intervention by the Reserve Bank of India (RBI) to stabilize the rupee and prevent excessive depreciation.
The RBI has reportedly been selling US Dollars from its reserve stockpile to reduce volatility in the foreign exchange market.
| Objective | Purpose |
|---|---|
| Stabilize INR | Prevent panic depreciation |
| Reduce Volatility | Control sharp fluctuations |
| Support Importers | Ease currency pressure |
| Maintain Confidence | Prevent speculative attacks |
Despite the intervention, the rupee remains vulnerable due to strong external pressures.
Another major concern for the Indian currency remains elevated global crude oil prices.
| Factor | Impact on Rupee |
|---|---|
| Oil Above $100/barrel | Negative |
| Higher Import Bill | Weakens INR |
| Inflation Risk | Increases pressure |
| Dollar Demand | Rises sharply |
India imports over 85% of its crude oil requirements, making the rupee highly sensitive to global energy prices.
The ongoing geopolitical tensions surrounding the Strait of Hormuz and the broader West Asia region continue to keep global markets nervous.
Any escalation in the US-Iran situation could further:
The US Dollar continues to remain firm globally due to:
| Driver | Effect |
|---|---|
| Higher US Interest Rates | Stronger Dollar |
| Sticky Inflation | Delays Fed cuts |
| Safe-Haven Demand | Supports USD |
| Global Risk-Off Sentiment | Weakens EM currencies |
The Federal Reserve’s higher-for-longer interest rate stance is keeping the Dollar Index elevated.
Foreign institutional investors (FIIs) continue pulling money out of Indian equities and debt markets.
| Effect | Impact |
|---|---|
| Dollar Outflows | Weakens INR |
| Lower Liquidity | Market volatility |
| Pressure on Equities | Risk-off sentiment |
Persistent FII selling has emerged as another major reason behind rupee weakness in recent weeks.
Currency traders and analysts are closely monitoring the following range for the rupee:
| Level | Importance |
|---|---|
| ₹94.10 | Immediate Support |
| ₹94.90 | Immediate Resistance |
| ₹95.43 | Record Low Zone |
A further escalation in crude prices or geopolitical tensions could push the rupee closer to new record lows.
While rupee depreciation hurts import-heavy sectors, some export-oriented industries benefit.
| Sector | Impact |
|---|---|
| IT Services | Positive |
| Pharmaceuticals | Positive |
| Export Businesses | Positive |
| Sector | Impact |
|---|---|
| Oil Marketing Companies | Negative |
| Aviation | Negative |
| Auto Importers | Negative |
| Electronics Manufacturers | Negative |
Analysts believe the rupee may continue witnessing volatility in the near term due to multiple global macroeconomic risks.
Unless crude oil prices cool significantly, pressure on the rupee is expected to persist.
The Indian Rupee enters the new trading week under pressure as falling forex reserves, elevated crude oil prices, and global geopolitical uncertainties continue to dominate sentiment.
While aggressive RBI intervention has helped prevent a sharper fall, the currency remains vulnerable to external shocks, especially movements in oil prices and the US Dollar.
Investors, importers, exporters, and market participants are expected to closely monitor Monday’s opening session for fresh directional cues.
The Indian Rupee last closed at ₹94.47 against the US Dollar on Friday, May 8, 2026.
Forex reserves declined due to aggressive RBI intervention to stabilize the rupee amid global volatility.
The rupee is under pressure due to rising crude oil prices, FII outflows, geopolitical tensions, and a strong US Dollar.
The rupee recently touched a record intraday low of ₹95.43 per USD.
IT services, pharmaceuticals, and export-focused sectors generally benefit from a weaker rupee.
Meta Description: INR vs USD today: Rupee outlook remains weak as India’s forex reserves fall sharply amid rising crude oil prices and global geopolitical tensions. Check latest analysis and forecasts.
Summary: The Indian Rupee remains under pressure near record lows as India’s forex reserves dropped sharply by $7.79 billion to $690.69 billion. The rupee last closed at ₹94.47 against the US Dollar amid elevated crude oil prices, persistent FII outflows, and ongoing US-Iran geopolitical tensions. Analysts expect continued volatility in the INR/USD pair as markets closely track RBI intervention, crude oil prices, and global macroeconomic developments.
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