The Indian rupee has depreciated by about 10 percent against the Bangladeshi taka over the past year, according to data cited on May 21, 2026. The currency also fell 11.86 percent against the Pakistani rupee during the same period, while its exchange rate against the US dollar dropped to 96.96. Analysts attribute the rupee’s broad decline to global economic uncertainty, high crude oil prices, and reduced foreign investment inflows.

Experts note that India’s heavy reliance on imported energy has made its currency vulnerable to rising oil prices, which increase import costs. The situation has been compounded by stalled US-Iran peace talks and higher international bond yields, prompting investors to withdraw funds from emerging markets like India. This has further tightened foreign exchange liquidity and pressured the rupee.

Economists warn that the rupee’s depreciation could raise living costs by making overseas education, travel, and imported goods more expensive. If import expenses continue to outpace export earnings and capital inflows, India’s current account deficit may deepen. Analysts expect short-term volatility to persist if oil prices remain high and global investors continue seeking safer assets.