The rupee fell to a fresh record low on Wednesday as elevated oil prices and rising US Treasury yields weighed on investor sentiment, while concerns over prolonged geopolitical tensions and potential global rate hikes continued to pressure emerging market currencies, Reuters reported.The domestic currency touched an all-time low of 96.96 against the US dollar during the session, breaching the previous record low of 96.6150 hit a day earlier, before ending at 96.82.The rupee has now weakened more than 6 per cent since the Iran conflict began in late February.Global bond markets extended losses as investors increased expectations that the US Federal Reserve may need to raise interest rates further in 2026.Oil prices eased marginally but continued to remain close to $110 a barrel after US President Donald Trump said he could still proceed with action against Iran after delaying an earlier planned strike to allow further talks with Tehran.Higher energy prices, weaker capital flows and rising global bond yields have also intensified concerns over India’s balance of payments position this fiscal year.“No convincing resolution to the conflict is in sight yet. This exogenous energy shock has upset the macro-apple cart and kept the rupee under pressure,” analysts at DBS said in a note, Reuters quoted.The brokerage has revised its forecast range for the rupee to 95-100 for the remainder of 2026 from an earlier estimate of 90-95.Traders told Reuters that dollar sales by state-run banks, likely on behalf of the Reserve Bank of India (RBI), helped limit the currency’s decline during the session.“There is constant (dollar) buying from clients while meaningful dollar supply is only coming from the RBI, keeping INR dependent on interventions,” a trader at a private bank said.The pressure on currencies has also been visible elsewhere in Asia. Indonesia’s central bank raised interest rates by a larger-than-expected 50 basis points to support the rupiah, which, like the rupee, has also fallen to record lows in recent sessions.