The rupee hit another new closing low of 96.83 against the dollar Wednesday, erasing some of the losses from the all-time low of 96.96 seen earlier in the day, reflecting unabated dollar outflows and a negative market sentiment amid elevated crude prices.The currency ended the day 30 paise weaker than the previous close Tuesday."The speed of the rupee’s descent since May 11 has caught the market off-guard. This downward pressure is fuelled by higher energy prices and aggressive FII capitulation," said KN Dey, a forex market consultant.Foreign institutional investors have taken out Rs 2.65 lakh crore from Indian markets in 2026 so far, close to last year's total exit of Rs 3.04 lakh crore.The rupee weakened more than 6% since the Iran war began ‌on February 28."With no bottom in sight, trying to forecast a stabilisation point is pure guesswork, and even a psychological slide to 100 may be on the table," Dey said.The weakness in the local currency reflects persistent FII outflows, elevated crude prices, and safe‑haven demand for the dollar amid global risk‑off sentiment, said Vinay Rajani, senior technical research analyst, HDFC Securities."Crude oil continues to hover around the $110 per barrel level. The market will be testing 97 against the $ in the absence of any positive development on the war front,” said Madan Sabnavis, chief economist, Bank of Baroda. “Going by observations of the last five sessions, it may not be too long before this level of Rs 97 is crossed."