The Indian rupee fell to a record low against the US dollar on Tuesday while stock markets opened sharply lower as rising crude oil prices and renewed fears over the US-Iran conflict rattled investor confidence.
The Indian rupee dropped 35 paise to touch a record low of 95.63 against the US dollar in early trade on Tuesday.
The sharp fall came after renewed concerns emerged over the fragile ceasefire situation between the United States and Iran, triggering another surge in global crude oil prices.
Also Read
At the interbank foreign exchange market, the rupee opened at 95.57 before slipping further to its weakest-ever level of 95.63 against the dollar. On Monday, the rupee had already closed at a record low of 95.28.
Market experts said rising oil prices and fears of prolonged geopolitical tensions in West Asia continue to pressure the Indian currency.
Oil prices rise amid Iran conflict fears
Global crude oil prices climbed again after US President Donald Trump said the ceasefire with Iran was on “massive life support” and at its “weakest”.
Trump also rejected Iran’s latest response to a US-backed peace proposal, raising concerns that tensions in the region could escalate further.
Brent crude, the international oil benchmark, rose above USD 105 per barrel in futures trade.
Analysts warned that continued disruption in West Asia could tighten global oil supplies further, creating additional pressure on import-dependent economies like India.
Sensex and Nifty open sharply lower
Indian stock markets also opened in the red amid weak investor sentiment.
The BSE Sensex fell more than 500 points in early trade, while the NSE Nifty slipped below the 23,700 mark.
IT and financial stocks were among the worst-hit sectors, with shares of Tata Consultancy Services, Infosys, Tech Mahindra and HCL Tech witnessing losses.
Meanwhile, oil and gas stocks saw some gains due to rising crude prices and expectations of stronger energy sector earnings.
Heavy selling by Foreign Institutional Investors (FIIs) also weighed on market sentiment.
According to exchange data, FIIs sold equities worth more than ₹8,400 crore on Monday.
Experts said investors remain cautious due to uncertainty surrounding the West Asia conflict, rising oil prices and concerns about inflationary pressure on the Indian economy.
Why crude oil matters for India
India imports a major portion of its crude oil requirements, making the economy highly sensitive to global oil price movements.
Higher crude prices can increase import bills, weaken the rupee, raise fuel costs and impact inflation across sectors.
Analysts said markets are now closely watching developments in the US-Iran situation, as any further escalation could trigger more volatility in global currencies, oil prices and stock markets.
Published: 12 May 2026, 10:28 am IST
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.