Rupee Slips on Oil, Firmer Dollar

2026-09-24 03:49 By Mariene Camarillo 1 min. read

The Indian rupee fell to around 95.8 per dollar, extending losses for another session as renewed gains in oil prices and a broadly firmer dollar amid rising US rate hike expectations weighed on the currency.

A stronger-than-expected US purchasing managers’ report fueled inflation concerns, while a poorly received five-year Treasury auction pushed US yields higher, with the 10-year yield rising more than 15 basis points from Tuesday’s close and the five-year yield climbing above 5% for the first time since 2007.

Brent crude reclaimed the $100-a-barrel mark despite Iran signaling openness to diplomacy to end the US-Iran war.

Foreign investors have net sold $3.5 billion of Indian stocks and bonds so far this month, adding to pressure on the rupee.

Meanwhile, frequent RBI intervention has helped limit losses near the 96 handle, with the central bank reportedly conducting at least $10 billion in sell-buy FX swaps in recent weeks to absorb excess rupee liquidity.



News Stream
Rupee Slips on Oil, Firmer Dollar
The Indian rupee fell to around 95.8 per dollar, extending losses for another session as renewed gains in oil prices and a broadly firmer dollar amid rising US rate hike expectations weighed on the currency. A stronger-than-expected US purchasing managers’ report fueled inflation concerns, while a poorly received five-year Treasury auction pushed US yields higher, with the 10-year yield rising more than 15 basis points from Tuesday’s close and the five-year yield climbing above 5% for the first time since 2007. Brent crude reclaimed the $100-a-barrel mark despite Iran signaling openness to diplomacy to end the US-Iran war. Foreign investors have net sold $3.5 billion of Indian stocks and bonds so far this month, adding to pressure on the rupee. Meanwhile, frequent RBI intervention has helped limit losses near the 96 handle, with the central bank reportedly conducting at least $10 billion in sell-buy FX swaps in recent weeks to absorb excess rupee liquidity.
2026-09-24
Rupee Steadies as Softer Oil, RBI Sales Support
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.
2026-09-23
Rupee Holds Gains as Oil Prices Ease
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.
2026-09-21