13 hrs ago
Rupee Falls Past 96 Against Dollar After Fed Hike
The Indian rupee became weaker against the US dollar.
It traded at more than 96 rupees for one dollar.
This was the first time in over a month that it crossed that level.
The Federal Reserve raised US interest rates by 25 basis points.
Higher US interest rates can make the US dollar more attractive to investors.
The Federal Reserve also suggested that it might raise rates again.
The stronger dollar put pressure on currencies in developing economies, including the rupee.
Higher crude oil prices also increased India’s need for dollars.
Together, these factors made the rupee more vulnerable.
The Indian rupee weakened to 96.095 per US dollar in opening trade, from a previous close of 95.91.
It crossed the 96 mark for the first time in more than a month.
The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%.
The rate increase was the Federal Reserve’s first since 2023, with another hike still possible as inflation remains elevated.
The US dollar rose 0.7% overnight to a seven-week high, while elevated crude prices increased India’s dollar demand.
- Who
- The Indian rupee, the Federal Reserve, and currency-market traders.
- What
- The rupee weakened past 96 per US dollar after the Federal Reserve raised interest rates and signaled possible further tightening.
- Where
- In opening currency-market trading involving the Indian rupee and US dollar.
- When
- Thursday, September 17, 2026; the Federal Reserve announced its rate decision on Wednesday.
- Why
- The Federal Reserve’s hawkish outlook strengthened the US dollar, while elevated crude oil prices increased India’s dollar demand.
Key facts
- Opening exchange rate
- 96.095 rupees per US dollar
- Previous close
- 95.91 rupees per US dollar
- Federal Reserve rate move
- 25-basis-point increase
- New benchmark rate
- 3.75%-4%
- Dollar Index
- 100.33 after rising 0.7% overnight
- Dollar outlook
- Markets fully priced in a possible rate increase by December
- Additional pressure
- Elevated crude oil prices increased India’s dollar demand
Sources
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