{"id":1093,"date":"2026-05-14T06:50:06","date_gmt":"2026-05-14T06:50:06","guid":{"rendered":"https:\/\/dailypakistannews.com\/?p=1093"},"modified":"2026-05-14T06:50:06","modified_gmt":"2026-05-14T06:50:06","slug":"indian-rupee-hits-record-low-as-energy-risks-deepen-central-bank-likely-cushions-fall","status":"publish","type":"post","link":"https:\/\/dailypakistannews.com\/?p=1093","title":{"rendered":"Indian rupee hits record low as energy risks deepen, central bank likely cushions fall"},"content":{"rendered":"

MUMBAI: The Indian rupee <\/a>fell to an all-time low on Thursday, pressured by stubbornly high oil prices and persistent foreign portfolio outflows that have led to a current and capital account strain for Asia\u2019s third-largest economy.<\/strong><\/p>\n

The Indian rupee fell 0.1% to 95.8525 per U.S. dollar, eclipsing its previous record low of 95.7950 hit on Wednesday.<\/p>\n

The currency has declined 1.4% so far this week and hit record lows in each trading session between Tuesday and Thursday.<\/p>\n

India imports about 90% of its oil needs and about 50% of its gas requirements, leaving the currency particularly vulnerable among emerging markets if the Iran war drags on.<\/p>\n

The central bank has so far sold down FX reserves and tapped rare regulatory measures to support the currency, which is Asia\u2019s worst performer in 2026 so far.<\/p>\n

On Thursday as well, dollar sales from state-run banks – most likely on behalf of the Reserve Bank of India \u2013 cushioned the rupee\u2019s fall, traders said.<\/p>\n

The country is facing a third consecutive year of a balance of payments deficit, prompting economists and traders to bake in expectations of persistent rupee weakness even as central bank interventions curb excessive volatility.<\/p>\n

\u201cIndia\u2019s current account deficit appears set to exceed ~2% of GDP, which the RBI has historically identified as the threshold level that India can finance sustainably over the long term,\u201d analysts at BofA Global Research said in a note.<\/p>\n

Prime Minister Narendra Modi earlier urged citizens to conserve foreign exchange reserves, while the federal government has hiked tariffs on precious metal imports.<\/p>\n

\u201cMarkets have been quite spooked by the shift in tone from policymakers,\u201d a senior trader at a foreign bank said, referring to Modi\u2019s remarks and signals from the oil minister that fuel prices may rise soon.<\/p>\n

While India has so far kept fuel prices unchanged, the government may need to raise them if the conflict drags on, RBI Governor Sanjay Malhotra said earlier this week.<\/p>\n

He added that monetary policy can look through temporary supply shocks but may need to act if inflation pressures become entrenched following the oil price spike.<\/p>\n","protected":false},"excerpt":{"rendered":"

MUMBAI: The Indian rupee fell to an all-time low on Thursday, pressured by stubbornly high oil prices and persistent foreign portfolio outflows that have led to a current and capital account strain for Asia\u2019s third-largest economy. The Indian rupee fell 0.1% to 95.8525 per U.S. dollar, eclipsing its previous record low of 95.7950 hit on […]<\/p>\n","protected":false},"author":0,"featured_media":1094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan-news"],"_links":{"self":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/1093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1093"}],"version-history":[{"count":0,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/1093\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/media\/1094"}],"wp:attachment":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}