The Indian rupee depreciated to a record low of 85.58 against the US dollar on May 20, 2026, as a sharp rise in global crude oil prices triggered a selloff in domestic equity markets. The previous record low was 85.46, set earlier this month.
Brent crude oil futures surged above $85 per barrel, driven by supply concerns and geopolitical tensions, raising fears of higher import costs for India, the world's third-largest oil consumer. The rise in oil prices typically pressures the rupee as it widens the country's trade deficit.
Indian stock markets opened in the red, with the BSE Sensex falling over 500 points and the Nifty 50 declining by more than 150 points in early trade. Foreign portfolio investors continued to pull out funds, adding to the downward pressure on the rupee.
The Reserve Bank of India is widely expected to intervene in the forex market to curb volatility, though analysts caution that sustained intervention may deplete foreign exchange reserves. The central bank has not yet issued a statement on the day's developments.
