Archive · 17 Sep 2026
Rupee Falls Past 96 Per Dollar After Fed Rate Hike
The rupee is India’s currency, and it became weaker against the US dollar.
On September 17, one dollar cost more than 96 rupees.
This happened after the US Federal Reserve raised interest rates.
Higher US rates can make the dollar more attractive to investors.
Oil prices also stayed above $100 per barrel, which added pressure.
Concerns about inflation and money leaving Indian investments made the situation harder.
Other central banks were also considering tighter policies.
An analyst said the rupee could weaken further toward 96.30-96.50 if it stays above 96.
The rupee fell past 96 per dollar on September 17, its first breach of that level since July.
The currency traded at 96.03 after closing the previous session at 95.95.
The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%.
Higher US rates, elevated crude prices, inflation concerns and foreign portfolio outflows increased pressure on the rupee.
Analyst Amit Pabari said a sustained move above 96 could push the rupee toward 96.30-96.50 in the near term.
- Who
- The Indian rupee, the US Federal Reserve, global investors and analyst Amit Pabari were involved.
- What
- The rupee breached 96 per dollar after the Federal Reserve raised interest rates and signalled possible further increases.
- When
- September 17; the article does not specify the year.
- Where
- In currency trading involving the Indian rupee and US dollar; the report also cites oil markets and tensions in West Asia.
- Why
- The dollar strengthened after the Fed rate hike, while high crude prices, inflation concerns and foreign portfolio outflows added pressure on the rupee.
- Exchange rate
- The rupee traded at 96.03 per dollar, compared with a previous close of 95.95.
- Federal Reserve move
- The benchmark interest rate increased by 25 basis points to a range of 3.75%-4%.
- Oil price
- Brent crude eased to around $105.69 per barrel but remained above $100.
- Potential rupee levels
- Amit Pabari said a sustained move above 96 could lead to 96.30-96.50 in the near term.
- Additional pressure
- Inflation concerns, high crude prices and foreign portfolio outflows weighed on the currency.
- Possible Indian policy impact
- The Fed decision could strengthen expectations of an RBI rate hike at its October monetary policy meeting.