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Rupee Hits Record Low 95.33/$, RBI Sells Dollars

5/1/2026

36 4 Full Breakdown

Summary

Story summary

Rupee fell to a record low of 95.3337 per dollar on Thursday, prompting the RBI to sell dollars.
It closed at 94.92 per dollar.
The 10-year bond yield rose two basis points to 7.02%.
Analysts say the balance-of-payments gap widened to $50 billion from $39 billion and $5 billion.
India’s forex reserves total $703 billion, with a $78 billion book limiting flexibility, while forecasts range from 94 per dollar (BofA) to 96.80 (Barclays) by year-end.

History

Historical Context

In July 1991 India’s rupee fell about 19 % after the Soviet collapse and Gulf War spiked oil prices, forcing a $1.8 billion IMF loan and massive reserve depletion. The same pattern re-emerged in 2024 as the RBI sold dollars to curb the rupee’s slide to 95.33 per dollar, prompting Finance Minister Nirmala Sitharaman to warn of another IMF-style rescue.

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Story summary

Rupee fell to a record low of 95.3337 per dollar on Thursday, prompting the RBI to sell dollars.
It closed at 94.92 per dollar.
The 10-year bond yield rose two basis points to 7.02%.
Analysts say the balance-of-payments gap widened to $50 billion from $39 billion and $5 billion.
India’s forex reserves total $703 billion, with a $78 billion book limiting flexibility, while forecasts range from 94 per dollar (BofA) to 96.80 (Barclays) by year-end.

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