Rupee Breaches 96 as Hawkish Fed, Oil Weigh

2026-09-17 03:52 By Mariene Camarillo 1 min. read

The Indian rupee fell to around 96.1 per dollar, extending losses to multi-week lows as elevated crude oil prices, a stronger dollar and expectations of further US monetary tightening weighed on the currency.

Brent crude hovered near $108 a barrel, keeping demand for dollars from oil importers elevated, while the US 10-year Treasury yield approached 5%.

The pressure intensified after the Federal Reserve raised interest rates by 25 basis points on Wednesday, its first hike since 2023, and signalled another increase could follow this year.

The move pushed the Dollar Index above 100 to its highest level in more than a month, while futures indicated roughly a 50% chance of another Fed hike next month.

Foreign portfolio outflows from Indian stocks and bonds added to the pressure, although a $703 million allocation of NSE shares to anchor investors and continued RBI dollar sales could provide some support.



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Rupee Breaches 96 as Hawkish Fed, Oil Weigh
The Indian rupee fell to around 96.1 per dollar, extending losses to multi-week lows as elevated crude oil prices, a stronger dollar and expectations of further US monetary tightening weighed on the currency. Brent crude hovered near $108 a barrel, keeping demand for dollars from oil importers elevated, while the US 10-year Treasury yield approached 5%. The pressure intensified after the Federal Reserve raised interest rates by 25 basis points on Wednesday, its first hike since 2023, and signalled another increase could follow this year. The move pushed the Dollar Index above 100 to its highest level in more than a month, while futures indicated roughly a 50% chance of another Fed hike next month. Foreign portfolio outflows from Indian stocks and bonds added to the pressure, although a $703 million allocation of NSE shares to anchor investors and continued RBI dollar sales could provide some support.
2026-09-17
Rupee Slips to 7-Week Low
The Indian rupee fell to around 95.9 per dollar, remaining near seven-week lows as elevated oil prices and rising expectations of a Federal Reserve rate hike weighed on the currency. The rupee has declined for seven straight sessions, losing about 1.5% despite near daily intervention by the Reserve Bank of India. Brent crude climbed toward $110 a barrel, heightening inflation concerns and pushing US Treasury yields to multi-year highs, while markets priced in more than a 90% chance of a Fed hike, up from around 60% a week earlier. With the move largely priced in, investors are now focused on the Fed's updated projections and Chair Kevin Warsh's comments for clues on the rate path ahead. Meanwhile, domestic data showed unemployment fell to a six month low of 5.0% in August, while the merchandise trade deficit was broadly stable at $26.86 billion.
2026-09-15
Indian Rupee Hits 6-week Low
The Indian Rupee touched 95.91 against the USD, the lowest since July 2026. Over the past 4 weeks, US Dollar Indian Rupee gained 0.17%, and in the last 12 months, it increased 8.84%.
2026-09-14