Rupee slips toward record low as oil tops $100 and US yields jump despite bank dollar support

Published on 15 May 2026

State banks sold dollars just in time

The Indian rupee weakened on Friday, edging close to its record low as oil stayed above $100 a barrel and US bond yields climbed. It fell 0.2% to 95.94, near the 95.9575 record hit the prior session, but state-run banks’ dollar sales helped prevent a deeper slide. Brent rose above $107 after fresh Iran-related uncertainty. India also raised petrol and diesel prices by more than 3% for the first time in four years, while markets priced about 90 bps of potential hikes, alongside expectations of Fed tightening.

Rupee fell 0.2% to 95.94 on Friday
It hovered near a record low of 95.9575 from the prior session
Brent oil climbed above $107 per barrel past $100
US 10-year yields rose to 4.53% over energy inflation fears
India raised petrol and diesel prices by more than 3% after four years
State-run banks’ dollar sales prevented a record low break

#forex #fed rate hikes #us bond yields #rupee #oil prices

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Rupee slips toward record low as oil tops $100 and US yields jump despite bank dollar support

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