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On May 12th, 2026, the Indian Rupee hit an all-time low against the US dollar, reacting to Prime Minister Narendra Modi's call for Indians to save fuel, refrain from buying gold (other than for essential use) for the next year, and limit foreign travel.

The greenback made just a splash on the weekly time frame as it fell back toward its lowest weekly close since 1962. The drop in factors of increased crude oil prices at $105-108 per barrel is on the heels of growing tension in West Asia over the import bill of India.

Investors' short-term fear of the negative impact of Modi's appeal to ease pressure on foreign exchange reserves and shrink the current account deficit. The lady's charming; Goldman Sachs's rate hike forecasts are accurate—and this newly announced plan is designed to be good for the economy in the long run, disrupting the flow of discretionary imports—like last year's gold—but increasing immediate inflation and growth concerns.

The high oil prices and low demand sentiment have weighed on the rupee, while the RBI has been keeping a close watch on this and has ample forex buffers to cope with the crisis.