Mumbai: The rupee fell to a fresh record low on Tuesday, closing at 96.53/$, as elevated crude oil prices and the prolonged conflict between the US and Iran kept the Strait of Hormuz shut. Traders said concerns over India's rising import bill were fuelling worries about inflation and the fiscal deficit, pushing the demand for dollars to a record.The currency weakened to an intra-day record low of 96.61/$ during the session, before mild intervention by the Reserve Bank of India (RBI) helped stem further losses.The rupee had previously closed at 96.36/$.RBI intervened twice during the trading session, once in early trade and again in the final hour, though traders described both interventions as mild."There was a continuous depreciation in the rupee, RBI intervened, but not in a large manner. The rupee touched its previous record low of 96.40 around noon, and after that, the fall was even faster," said Dilip Parmar, currency research analyst at HDFC Securities.Agencies"Oil prices and FPI outflows are a big problem to the rupee," Parmar said.Brent crude oil prices stood at $100 per barrel during Asian trading hours on Tuesday, data from Reuters showed.Since the start of the war, the currency has depreciated nearly five rupees. It depreciated over 10% in FY26. This fiscal, it has fallen 3.7% so far."RBI has used all resources that it had. Therefore, interventions these days are mild. Exporters aren't selling dollars, while importers are panic buying even if their positions are covered and are fully hedged," said Anil Bhansali, head of treasury, Finrex Treasury Advisors.Traders expect the rupee to trade between 96.25 and 97 on Wednesday.