India’s national currency hit a record low, reaching 95.63 rupees per US dollar in trading on May 13, 2026. The main drivers of the depreciation were volatile global energy prices, lingering geopolitical tensions, and a sharp decline in global market sentiment.  

The rupee has got stuck in a bear trend: on May 11, 2026, it traded at 95.31 per dollar. The fall accelerated shortly afterwards. Pressure on the financial sector worsened following remarks by US President Donald Trump about the fragility of the current peace process in the Middle East. Mr. Trump stressed that the previously reached ceasefire agreement is now literally “hanging by a thread.” Fears of a new escalation are forcing large investors to reassess their positions in emerging markets and shift funds into safe‑haven assets.

India’s Prime Minister Narendra Modi officially appealed to the public to tighten savings measures to protect the country's foreign exchange reserves. The head of government urged citizens to drastically reduce gold purchases, cut consumption of imported fuel, and refrain from non‑essential trips abroad. Alongside the government’s appeals, the domestic stock market is facing a large capital outflow: Indian private investors have already transferred more than $2.2 billion into foreign securities. Massive capital flight and waning confidence in domestic assets are placing a critical strain on the current account balance amid global turbulence.