MUFG’s Michael Wan notes that the Indian Rupee (INR) has been the weakest major Asian currency in 2026, sliding to a record low above 96 per US Dollar (USD) and losing about 5.5% since the Iran conflict began. Wan stresses vulnerability to higher Oil prices and US yields, and highlights India’s swift policy response via tighter silver import rules to support the currency and reserves.

Rupee hits record low as authorities react

"The Indian rupee was the most prominent casualty, breaching 96 per dollar for the first time on record on Friday, with a cumulative depreciation of roughly 5.5% since the Iran conflict began in late February, making it Asia's worst-performing major currency in 2026."

"This was particularly true for the oil importers such as INR and PHP, which now face a double whammy of higher oil prices and rising US yields, coupled with currencies with domestic headwinds and sensitive to US yields such as IDR."

"India moved swiftly over the weekend to defend the rupee, tightening silver import rules and requiring prior government approval for silver bar imports, while Sri Lanka imposed a 50% import duty surcharge on private vehicles for three months, both citing foreign exchange reserve pressures."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)