Indian Rupee Hits 4-week Low

The Indian rupee fell to around 95.9 per dollar, extending losses for another session as elevated oil prices and a stronger dollar weighed on the currency, while rising global bond yields reinforced concerns over further US rate hikes. Brent crude remained elevated amid limited progress in US-Iran talks, raising inflation concerns for energy-importing economies such as India. The dollar index held above 101, near a two-month high, as markets continued to price further Fed tightening. Higher US Treasury yields and a broad decline across Asian currencies added to the pressure, while Indian equities posted their sharpest single-day fall since early July. The rupee, however, avoided a sharper decline as the RBI likely intervened in the foreign exchange market, with traders saying state-run banks sold dollars to limit losses.

The Indian rupee hovered around 95.6 per dollar, steadying after gaining for three consecutive sessions as softer oil prices and continued RBI intervention limited downside, while traders remained cautious ahead of developments on US-Iran diplomacy. Brent crude hovered near a two-week low around $99.2 a barrel on hopes of a diplomatic resolution to the Middle East conflict, easing concerns over India’s energy import bill. State-run bank dollar sales and RBI spot intervention and FX swaps also helped contain losses. The central bank’s earlier policy measures have attracted about $133 billion through the diaspora deposit scheme, lifting FX reserves to a record high. However, foreign equity outflows remain a drag, with overseas investors selling $1.81 billion of Indian shares in September and $25.87 billion so far this year.

The Indian rupee hovered around 95.58 per dollar, extending gains for a third consecutive session as softer crude oil prices and lower long-dated US Treasury yields improved risk sentiment, while continued RBI intervention and large foreign currency inflows helped limit depreciation risks. India’s measures to strengthen its balance of payments have raised $143.6 billion, bolstering external liquidity and allowing the central bank to maintain a firm grip on rupee weakness. Brent crude was around $100 a barrel ahead of potential US-Iran talks at the UN General Assembly, keeping oil prices a key focus given their impact on India’s import bill and expectations for RBI rate hikes. Meanwhile, traders have raised bets on monetary tightening after the Fed and Bank of Japan raised rates last week, with markets pricing a 56% chance of a US hike in October. Importer hedging demand capped gains, with the rupee expected to stay within 95–96 ahead of the RBI decision.