The Indian rupee has depreciated significantly over the past year, losing about 10 percent of its value against the Bangladeshi taka and nearly 12 percent against the Pakistani rupee, according to a report by The Economic Times published on May 22, 2026. The rupee also hit a record low of 96.96 per US dollar last Wednesday. Analysts attribute the decline to global economic uncertainty, rising crude oil prices, and reduced foreign investment inflows.

Experts note that India’s heavy reliance on imported energy has made its currency vulnerable to oil price fluctuations. The ongoing stalemate in Iran–US peace talks and higher international bond yields have further driven investors away from emerging markets, putting additional pressure on the rupee. Economists warn that the depreciation could raise costs for overseas education, travel, imported goods, and international business transactions.

Analysts suggest that if import costs continue to outpace export earnings and foreign capital inflows, India’s current account deficit could deepen. The rupee’s short-term volatility is expected to persist as global geopolitical conditions, inflation, and investment trends evolve in the coming months.