The rupee slipped to a record low of 96.60 against the US dollar before settling at 96.52 (provisional) on Tuesday, weighed down by soaring crude oil prices, persistent foreign capital outflows, and a resilient dollar buoyed by global risk-aversion.The rupee is Asia’s worst-performing currency in 2026, having tumbled to a historic intraday low of 96.60 against the US dollar. The currency has depreciated 1.5 per cent this month and more than 7 per cent this year.Forex traders said the rupee remains vulnerable to rising crude oil prices and the closure of the Strait of Hormuz.At the interbank foreign exchange market, the rupee opened at 96.38 against the US dollar, then lost further ground and touched a record low of 96.60, before settling at 96.52 (provisional), registering a fall of 32 paise over its previous close.On Monday, the Indian rupee settled at a record low of 96.20 against the US dollar.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.24, higher by 0.05 per cent due to simmering Iran tensions.Brent crude, the global oil benchmark, was trading down 1.92 per cent at USD 109.95 per barrel in futures trade.Moreover, emerging market economies, including India, continue to feel the pressure of rising crude oil prices, as elevated rates accelerate the outflows of US dollars, along with the withdrawals of funds by foreign portfolio investors, traders said.