Archive · 29 Sep 2026
Rupee Slips Past 96 as US-Iran Tensions Lift Oil
The Indian rupee became weaker against the US dollar on Monday.
One report said it ended at 96.03, while another said it ended at 95.97.
Both reports said the rupee fell and moved beyond the important 96 level.
Investors were worried because the United States and Iran had not reached an agreement.
This made people less willing to take risks in global markets.
Oil became more expensive, which can put pressure on India’s currency.
Foreign investors also sold many Indian shares, and Indian stock markets fell.
An analyst said the rupee could remain under pressure, although help from the Reserve Bank of India could support it.
The rupee weakened on Monday, with reports differing on its provisional close: 96.03, down 28 paise, or 95.97, down 22 paise.
The currency opened at 95.89 and breached the 96-per-dollar level for the second time in two weeks.
Risk-off sentiment followed the US rejection of an Iranian proposal, reducing hopes of a truce and reopening the Strait of Hormuz.
Brent crude rose 3.57% to USD 108.04 per barrel, while foreign investors sold Indian equities worth Rs 5,353.22 crore.
The Sensex fell 1,124.02 points and the Nifty declined 360.25 points, even as India’s August industrial output grew 8%.
- Who
- The Indian rupee, US dollar, foreign investors, US and Iranian negotiators, and market participants; analyst Anuj Choudhary also commented.
- What
- The rupee weakened and breached 96 per US dollar, although the reports gave different provisional closing figures of 96.03 and 95.97.
- When
- Monday, September 28; the rupee had previously breached 96 intraday on September 17.
- Where
- India’s interbank foreign-exchange market and domestic equity markets.
- Why
- Risk-off sentiment linked to the US-Iran stalemate, higher crude prices, stronger US dollar and Treasury yields, and foreign-equity outflows pressured the rupee.
Downward Pressure
Potential Support
Near-term rupee outlook
Downward Pressure
Forex traders and analyst Anuj Choudhary said deteriorating global risk sentiment, falling risk assets, higher crude prices, and foreign-fund withdrawals could continue pressuring the rupee.
Potential Support
Choudhary said possible intervention by the Reserve Bank of India could support the rupee at lower levels.
- Reported closing rates
- 96.03 per US dollar, down 28 paise, in one report; 95.97, down 22 paise, in another.
- Opening rate
- The rupee opened at 95.89 against the US dollar.
- Second breach of 96
- The rupee crossed the 96-per-dollar level for the second time in two weeks.
- Brent crude
- Brent crude futures rose 3.57% to USD 108.04 per barrel.
- Foreign equity flows
- Foreign Institutional Investors sold Indian equities worth Rs 5,353.22 crore net.
- Stock markets
- The Sensex fell 1,124.02 points to 72,771.72, while the Nifty fell 360.25 points to 22,780.25.
- Industrial output
- India’s industrial output grew 8% in August, compared with 7.4% in July.
