The rupee fell 2 paise to close at an all-time low of 95.25 (provisional) against the U.S. dollar on Tuesday (May 5, 2026), as investors are retreating from riskier assets amid renewed clashes in the Gulf and targeting of UAE infrastructure, which have reignited supply chain fears.

Forex traders said Brent oil, hovering near $110 per barrel, is maintaining pressure on oil-importing economies like India. Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.