Indian Rupee Hits Record Low Near 97 Per Dollar
The Indian rupee reached a record low of 96.96 against the U.S. dollar as geopolitical tensions kept oil prices near 110 dollars per barrel. Rising Treasury yields and persistent energy shocks have prompted analysts at DBS to revise their 2026 rupee forecast to a weaker range of 95 to 100.
The India rupee fell to a record low of 96.96 per dollar on Wednesday as stalled peace talks kept oil prices elevated. The currency has declined over 6% since the conflict in Iran began in late February. For investors, the currency's weakness signals a widening balance of payments deficit and potential for further central bank intervention.
### Energy Shocks Strain the Macro Outlook Stalled negotiations between the United States and Tehran have kept Brent Crude Oil near $110 a barrel. High energy costs are driving global bond yields higher and hurting equities as markets price in further rate hikes through 2026. This exogenous shock has upset the macro-apple cart, analysts at DBS said in a note.
