Rupee crosses psychological barrier of ₹96 a dollar

📌 Summary:

• Indian rupee crossed the psychological ₹96/dollar mark on May 15, 2026 — intraday high ₹96.14; closed at ₹95.8
• The rupee has depreciated about 6% since January 2026, when it was at ₹89.8/dollar
• Two main drivers: (a) Brent crude crossing $108/barrel — bloats India's import bill (India imports ~85% of its crude needs); (b) sustained foreign portfolio investor (FPI) outflows from Indian equities
• Markets watched Trump-Xi summit but it gave no positive cue on U.S.-Iran peace efforts — both leaders only agreed that the Strait of Hormuz should remain open
• Treasury analysts say barring RBI's dollar sales (forex intervention), there are no major appreciation triggers for the rupee in the short term

🎯 UPSC Relevance: GS3 — Indian Economy: exchange rate; balance of payments; RBI's monetary and forex management; impact of commodity prices and global risk-off sentiment on emerging-market currencies

📝 Prelims Facts:

• Rupee intraday high May 15, 2026: ₹96.14/USD; closed: ₹95.8/USD
• Year-to-date (Jan–May 2026) depreciation: ~6%
• Brent crude: > $108/barrel
• India imports ~85% of its crude oil requirement (NSE/PPAC)
• Strait of Hormuz: choke point through which ~20% of global oil trade flows
• RBI uses spot/forward dollar sales to defend the rupee

🔑 Key Term: Managed Float — India's exchange-rate regime in which the rupee is largely market-determined but the RBI intervenes via forex reserves to curb excessive volatility.