India’s Rupee slid to a record low on Monday as persistently high energy prices driven by the Iran war pushed global bond yields higher, weakening risk sentiment and adding to economic pressures on the world’s third-largest oil importer.

The currency dropped nearly 0.3% to 96.2275 per Dollar, surpassing its previous all-time low of 96.1350. The Rupee, Asia’s worst-performing currency of 2026, has now hit fresh record lows for five consecutive sessions.

Traders said the currency’s decline would likely have been steeper without suspected dollar-selling intervention from the Reserve Bank of India.

Alongside market operations, Indian authorities have also introduced unusual regulatory measures to support the Rupee, including recent restrictions on most silver imports, Reuters reports.

Overall, the currency has weakened about 5.5% since the onset of the Iran war.

“With chances of oil staying higher for longer, ​we revise our forecast for further INR weakness to 96/USD by mid‑2026 ​and 98/USD by end-2026,” said analysts at BofA Global Research.

“Growth risks dampen ‌prospects ⁠for any reversal in equity inflows while low carry, high hedging costs, concerns around wider fiscal deficit and rate-hikes would reduce scope for debt flows.”

Foreign investors have sold more than $23.5 billion in domestic equities and bonds since March.

Across markets, regional stocks declined while government bonds from Tokyo to New York extended losses as surging energy prices tied to the ongoing Middle East conflict fuelled inflation concerns.

Meanwhile, efforts to de-escalate the Iran war reportedly lost momentum after a drone strike hit a nuclear power facility in the United Arab Emirates.

Indian assets also came under pressure, with the 10-year government bond yield rising 6 basis points to 7.12%, while the benchmark Nifty 50 index fell more than 1%.