Rupee hits 96 against USD: How can falling currency impact your investments and how to protect them?
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- Indian rupee fell to a record low of ₹96.96 per US dollar on 20 May 2026.
- Indian rupee depreciated by more than 12% over the past year, sliding from around ₹85 to about ₹96 per dollar.
- RBI may need to raise interest rates if inflation stays above its 4% target due to higher import costs from a weaker rupee.
- 10‑year government bond yields rose from roughly 6.25% to about 7.00% in the last year as the rupee weakened, pushing bond prices down.
- Banks and NBFCs face higher borrowing costs for borrowers and potential loan‑demand slowdown, which could hurt their profitability and share prices.
Why it matters: Investors in Indian equities and bonds face lower returns as a weaker rupee fuels inflation, forces RBI rate hikes, squeezes corporate margins and pushes bank loan demand down, while import‑dependent businesses see cost spikes.
