The Indian rupee weakened further against the US dollar on Tuesday, touching a fresh low amid concerns over prolonged geopolitical tensions between the United States and Iran. Persistent gains in global crude oil prices, coupled with continued foreign portfolio outflows from Indian equities, added pressure on the domestic currency.
The rupee opened at 95.50 per US dollar and moved beyond its earlier low recorded last week. During intraday trade, the currency slipped further to 95.6250 during the day.
Since the escalation of the US-Iran conflict, the rupee has weakened considerably against the dollar, reflecting concerns around India’s external balances and import costs.
Global crude oil prices have risen sharply in recent months following tensions in the Middle East. Brent crude prices have climbed significantly since the conflict intensified, affecting currencies of countries that rely heavily on oil imports.
Along with the Indian rupee, currencies such as the Philippine peso and Indonesian rupiah have also come under pressure due to higher energy costs and shifting global investor sentiment.
Foreign institutional investors have continued to reduce exposure to Indian equities amid global uncertainty and concerns around rising commodity prices.
According to the news reports, overseas investors have withdrawn more than $20 billion from Indian equities since the conflict began. On Monday alone, preliminary figures indicated net selling of nearly $900 million.
Continued outflows from equity markets may further affect the rupee by reducing foreign currency inflows into the domestic market.
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The rupee’s recent weakness reflects a combination of global geopolitical uncertainty, elevated crude oil prices and sustained foreign investor outflows. Market participants are likely to remain focused on developments in the US-Iran conflict, movements in energy prices and capital flow trends, which may continue to shape currency market sentiment in the near term.
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Published on: May 12, 2026, 10:29 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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