Rupee Rebounds on Lower Oil, IPO Inflows

2026-09-18 03:40 By Mariene Camarillo 1 min. read

The Indian rupee strengthened to around 95.7 per dollar, rebounding from seven-week lows as easing crude oil prices, expectations of foreign portfolio inflows linked to the National Stock Exchange’s $2.3 billion IPO and likely RBI intervention supported the currency.

Brent crude fell for a third straight session to around $104.1 a barrel as hopes of alternative routes for Middle Eastern oil to reach markets outweighed supply concerns, while a modest retreat in US bond yields also provided relief.

Traders expect sizeable foreign institutional investor demand for the NSE IPO, which closes for subscription on Monday.

The rupee held near 96 per dollar on Thursday despite the Federal Reserve’s rate hike, recovering after likely RBI intervention and portfolio inflows linked to global equity index rebalancing.

However, strong importer dollar demand and elevated oil prices remain headwinds, while the dollar stays above 100 following the Fed’s hawkish stance.



News Stream
Rupee Rebounds on Lower Oil, IPO Inflows
The Indian rupee strengthened to around 95.7 per dollar, rebounding from seven-week lows as easing crude oil prices, expectations of foreign portfolio inflows linked to the National Stock Exchange’s $2.3 billion IPO and likely RBI intervention supported the currency. Brent crude fell for a third straight session to around $104.1 a barrel as hopes of alternative routes for Middle Eastern oil to reach markets outweighed supply concerns, while a modest retreat in US bond yields also provided relief. Traders expect sizeable foreign institutional investor demand for the NSE IPO, which closes for subscription on Monday. The rupee held near 96 per dollar on Thursday despite the Federal Reserve’s rate hike, recovering after likely RBI intervention and portfolio inflows linked to global equity index rebalancing. However, strong importer dollar demand and elevated oil prices remain headwinds, while the dollar stays above 100 following the Fed’s hawkish stance.
2026-09-18
Rupee Falls Toward 96 as Hawkish Fed, Oil Weigh
The Indian rupee fell to around 95.9 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