USD/INR rises to 95.95 after India raises gold import duties and energy prices, sparking investor unease over forex reserves.
The Indian Rupee (INR) weakened to near 95.95 against the US Dollar (USD) in early trade, approaching its all-time low. The decline follows India’s decision to hike import duties on gold and silver to 15% from 6%, aiming to curb demand and ease pressure on foreign exchange reserves.
India’s forex reserves face scrutiny as gold imports account for over 9% of the country’s total imports, which reached USD 775 billion in 2025-26. The government also raised petrol and diesel prices by INR 3 per litre to offset surging crude oil costs, with WTI oil prices up nearly 70% this year to $98.
Investor sentiment has turned cautious amid concerns over the adequacy of India’s forex reserves to cover imports, despite the government’s efforts to reduce non-essential gold purchases.