The Indian rupee fell to an all-time low on Monday, ​as stubbornly high energy prices due to the Iran war sent ‌global bond yields soaring, denting risk appetite and deepening economic headwinds confronting the world’s third-largest crude importer.

The rupee fell nearly 0.3% to 96.2275 per dollar, eclipsing its previous ​all-time low of 96.1350.

Asia’s worst-performing currency of 2026 has fallen ​to record lows for five straight sessions.

Traders said the losses would ⁠have been steeper if not for likely dollar-selling intervention by the Reserve ​Bank of India.

In addition to market interventions, Indian policymakers have deployed rare regulatory ​curbs to support the rupee, including, most recently, restrictions on most silver imports.

The currency has declined 5.5% since the Iran war began.

“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,” analysts at BofA Global Research said in a note.

“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.”

Overseas investors have net sold over $23.5 billion of local stocks and bonds since ​March.

Regional stocks slumped and ​bonds from Tokyo ⁠to New York extended losses as rising energy prices from the ongoing Middle East war fanned inflation fears.

Efforts to ​end the Iran war appeared to have stalled following ​a drone ⁠strike at a nuclear power plant in the United Arab Emirates.

The pressure reflected on Indian assets as well, with the 10-year bond yield up 6 basis ⁠points ​to 7.12% while the benchmark equity index Nifty ​50 slumped over 1%.