AA Edit | Check Fuel Use As Rupee Falls
In the last one year, the rupee has emerged as the worst performing major currency
The Indian rupee fell to a record low of 95.33 per US dollar on April 30, as foreign investors offloaded Indian stocks and bonds over the economic risks confronting India from a resurgence in crude oil prices to 2022 highs of $126 a barrel.
In the last one year, the rupee has emerged as the worst performing major currency, with a 12.4 per cent fall. The currency was 84.55 on April 30, 2025 and it fell to 95.33 on April 30, 2026. Brazil was the second worst performing major currency with a fall of 11.8 per cent and South African the third worst at 9.7 per cent.
While the country faced the headwinds from the US trade policy last year, it is at the receiving end of the blowbacks from the crude oil crisis — a persistent weak spot.
As India is dependent on foreign imports to meet 85 per cent of its transport needs, a higher crude oil price leads to a ripple effect on balance of payments and headline inflation. This crisis template has been getting repeated every time Gulf nations are in trouble, connecting India firmly with unstable Arab nations as a conjoined twin.
The modern world has technologies that supplant crude oil and reduce India’s dependence on foreign imports. But it requires long term planning and implementation. In the short-term, however, India has fewer options — making India an attractive investment destination to draw in more dollars to offset the outflow.
The government could also reduce fuel consumption in the country immediately by encouraging companies to offer work from home options to its employees and discourage travel wherever it is possible. These steps may affect small businesses dependent on official and tourist activity, but this is the fastest way to tame the fuel demand and restore balance to the rupee movement.