Archive · 1 Oct 2026
Rupee Falls to 96.31 as Oil, Yields, FII Selling Weigh
The Indian rupee became weaker against the US dollar and ended at 96.31.
This happened because oil became expensive, and India buys a lot of oil from other countries.
Conflict in the Middle East has disrupted some oil supplies.
The US dollar also became stronger, making the rupee less attractive to investors.
Foreign investors have been selling Indian stocks and bonds, which adds to demand for dollars.
Higher US government bond yields also encouraged investors to move money away from emerging markets.
The Reserve Bank of India sold dollars to slow the rupee’s decline.
Experts expect the rupee to remain unstable and watch what the central bank does at its October meeting.
The Indian rupee fell 36 paise, or 0.5%, to close at 96.31 per dollar.
Elevated crude prices, Middle East tensions and uncertain US-Iran negotiations increased pressure on the currency.
The US dollar index neared 102, while the US 10-year Treasury yield climbed toward 5.35%.
Foreign investors have sold domestic equities worth Rs 2.15 lakh crore this year, increasing dollar demand.
Analysts expect continued volatility, with the rupee projected to trade between 95.75 and 96.75.
- Who
- The Indian rupee, the Reserve Bank of India, foreign investors and market analysts are central to the report.
- What
- The rupee fell 0.5% to 96.31 per US dollar, its lowest level in more than two months.
- When
- Thursday; Indian equity and money markets were scheduled to close on October 2 for Mahatma Gandhi Jayanti.
- Where
- India’s foreign-exchange and financial markets.
- Why
- Higher crude oil prices, a stronger US dollar, rising global bond yields, foreign-investor selling and geopolitical tensions pressured the rupee.
- Closing level
- Rs 96.31 per US dollar
- Daily move
- Down 36 paise, or 0.5%
- Brent crude
- Above $100 per barrel
- US 10-year Treasury yield
- Near 5.35%
- Foreign-investor equity sales
- Rs 2.15 lakh crore so far this year
- Projected rupee range
- 95.75–96.75 per dollar
- Policy outlook
- Bank of America economists expect a 25-basis-point rate hike at the October meeting