The domestic currency has now declined for seven straight sessions, losing around 2.2% during the period. Since the Iran conflict escalated in late September, the rupee has weakened by more than 6% amid rising crude oil prices and persistent risk aversion in global markets.
Currency traders said the pressure on the rupee remains largely driven by elevated oil prices and stronger dollar demand. Brent crude hovered near $110 per barrel in Asian trade as investors tracked developments around possible negotiations between the US and Iran over the conflict and the reopening of the Strait of Hormuz.
“Another day, another new high on dollar/rupee,” a currency trader at a bank said, adding that the current cycle of rupee weakness is unlikely to reverse without either a meaningful correction in crude oil prices or stronger dollar inflows into India.
Market sentiment remained cautious despite US President Donald Trump saying he had paused a planned attack on Iran to allow negotiations. US equity futures and Asian markets traded lower, weighing further on regional currencies.
Asian currencies also came under pressure from rising US Treasury yields, as investors priced in the possibility that persistently high oil prices could keep inflation elevated for longer.
Meanwhile, fuel retailers raised petrol and diesel prices in India by about ₹0.9 per litre on Tuesday (May 19), marking the second increase within a week, reflecting the impact of elevated global crude prices.
–With Reuters inputs
First Published: May 19, 2026 9:09 AM IST
