The rupee rebounded by 16 paise from its all-time low to 95.52 against the American currency in early trade on Wednesday (May 13, 2026) amid hopes of lower demand for the U.S. dollar due to import curbs.

Forex traders said market participants are expecting some resilience in the dollar-rupee pair as gold importers curb their demand.

The Indian Government raised import tariffs on Gold and Silver to 15% from 6% to curb overseas purchases of the metals and ease pressure on the Country’s FX reserves.

However, elevated crude oil prices and the strength of the American currency in the overseas market weighed on investor sentiments.

At the interbank foreign exchange market, the rupee opened at 95.52, registering a gain of 16 paise from its previous all-time closing low.

On Tuesday (May 12), the rupee depreciated 40 paise to close at a fresh all-time low of 95.68 against the U.S. dollar.

Traders said the hike in gold import tariff could bring down the demand of the yellow metal in the country, which is the World’s second-largest consumer of precious metals.

“The move will also help in curbing the CAD and help the rupee to some extent,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

On Sunday (May 10), PM Modi urged people to avoid Gold purchases for a year to help protect foreign exchange as India imports most of the precious commodities with hardly any production of its own.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.30, up 0.01%.

Brent crude, the global oil benchmark, was trading lower by 1.12% at $106.56 per barrel in futures trade.

On the domestic equity market front, stock markets rebounded in early trade. The 30-share Sensex climbed 75.64 points to 74,614.51, while the Nifty was up 17.10 points to 23,391.10.

Foreign Institutional Investors offloaded equities worth ₹1,959.39 crore on Tuesday (May 12), according to exchange data.

On the domestic macroeconomic front, retail inflation inched up to 3.48% in April mainly due to higher prices of gold and silver jewellery as well as some kitchen items, according to government data released on Tuesday (May 12).

The Consumer Price Index (CPI)-based inflation, with base year 2024, was 3.40% in March, 3.21% in February, and 2.74% in January.

The data released by the National Statistics Office (NSO) showed that inflation in the food basket was at 4.20% in April, up from 3.87% in the preceding month.

The rupee depreciated 7 paise to close at a record low of 90.97 (provisional) against the U.S. dollar on Tuesday (January 20, 2026), as strong dollar demand from metal importers and persistent foreign fund outflows dented investor sentiment.

Forex traders said rising geopolitical uncertainties, including renewed U.S. expansionary signals, have increased risk aversion and kept emerging market currencies under pressure.

Moreover, a sluggish domestic stock market triggered by an exodus of foreign capital further weighed on the local unit, they said.

At the interbank foreign exchange, the rupee opened at 90.91 and lost ground, touched an intraday low of 91.06, and finally ended the day at an all-time low of 90.97 (provisional) against the American currency.

On Monday (January 19, 2026), the rupee depreciated by 12 paise to close at 90.90 against the greenback.

On December 16, 2025, the rupee reached its lowest intra-day level of 91.14 and its previous lowest closing level of 90.93 against the American currency.

“The Indian rupee traded with a negative bias and slipped below the 91-mark on risk aversion in global markets and persistent FII outflows. However, a weak dollar and intervention by the RBI prevented a sharp fall,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Mr. Choudhary further noted that the rupee is expected to trade with a negative bias on foreign fund outflows and risk aversion in global markets over the U.S. stance on Greenland.

“Uncertainty over trade deal talks may also pressurise the rupee. However, a weak dollar and any RBI intervention may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 90.70 to 91.25,” he said.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.91% lower at 98.48.

Brent crude, the global oil benchmark, was trading at $63.94 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 1,065.71 points to settle at 82,180.47, while the Nifty dived 353 points to 25,232.50.

Foreign institutional investors offloaded equities worth ₹3,262.82 crore on Monday (January 19, 2026), according to exchange data.