Rupee Nears Record Low Against Dollar, Experts Warn It Could Touch 100 Mark Soon
Brief By Newsbrief / 1:40 PM on 22 May 2026
The Indian rupee continues to remain under heavy pressure against the US dollar, sparking concerns about further depreciation in the coming months. The currency recently crossed the 96 mark and on Wednesday nearly touched an all-time low close to 97 per dollar before witnessing slight recovery on Thursday.
Former International Monetary Fund Deputy Managing Director Gita Gopinath has also warned that the rupee could eventually weaken to the 100-per-dollar level if current global and domestic pressures continue. On Thursday, however, the rupee recovered slightly by 41 paise to trade around 96.45 against the dollar.
Analysts say the biggest reasons behind the rupee’s fall are rising crude oil prices, strong dollar demand, and heavy foreign investor outflows. India imports a large portion of its crude oil requirements, and with oil prices hovering close to 110 dollars per barrel, pressure on the currency has intensified. Foreign investors have reportedly sold Indian assets worth over ₹2.20 lakh crore this year, further weakening market sentiment.
Over the past year, the rupee has reportedly depreciated by around 10 to 12 percent against the dollar. Even in 2025, the currency had already weakened by nearly 4.7 percent, marking one of its worst performances since 2022.
However, India is not alone in facing currency pressure. Several global currencies, including the Japanese yen, Pakistani rupee, and Bangladeshi taka, have also weakened against the dollar. The Japanese yen reportedly fell more than 7 percent over the past year due to Japan’s ultra-low interest rates.
Meanwhile, China’s yuan has remained relatively stable because of continuous intervention by the central bank. Russia’s ruble, on the other hand, has strengthened significantly over the past year, with the currency appreciating nearly 9 to 10 percent against the dollar.
Economists believe that unless crude oil prices cool down and foreign investment returns improve, pressure on the Indian rupee may continue in the near future.