Archive · 17 Sep 2026
Rupee Recovers From Eight-Week Low on RBI, Inflows
The Indian rupee became weaker against the US dollar after the US Federal Reserve raised interest rates.
A stronger dollar can make currencies such as the rupee less attractive to investors.
The rupee briefly fell below the important level of 96 per dollar.
State-run banks reportedly sold dollars for the Reserve Bank of India to help support the rupee.
Money coming into the market from an NSE initial public offering and FTSE rebalancing also helped.
Oil prices fell, which is helpful for India because it imports a lot of oil.
Lower oil prices can reduce the amount India spends on imports.
Experts still expect the rupee to face pressure because of geopolitical risks and foreign investors selling Indian shares.
The rupee fell to an intraday low of 96.10 per dollar, its weakest level in nearly eight weeks.
The decline followed a 25-basis-point US Federal Reserve rate hike and signals of another increase this year.
State-run banks likely sold dollars on the Reserve Bank of India’s behalf, cushioning the rupee’s fall.
NSE IPO inflows, FTSE rebalancing funds and lower crude oil prices also supported the currency.
The rupee closed at 95.93 per dollar, while analysts expect continued pressure from geopolitical uncertainty and foreign outflows.
- Who
- The Indian rupee, the Reserve Bank of India, state-run banks, the US Federal Reserve, foreign investors and currency-market analysts.
- What
- The rupee recovered after falling to an eight-week low against the dollar.
- When
- On Thursday; foreign-investor data cited in the report was recorded as of September 17.
- Where
- In India’s foreign-exchange market.
- Why
- The rupee was pressured by the US rate hike and stronger dollar, then supported by suspected RBI intervention, market inflows and lower oil prices.
- Intraday low
- 96.10 rupees per dollar
- Closing level
- 95.93 rupees per dollar
- US rate hike
- 25 basis points
- RBI liquidity operation
- Open market operation sales worth Rs 50,000 crore
- Planned OMO sales
- Rs 1 lakh crore in three tranches
- Crude oil
- Brent crude was quoted around $102 per barrel after falling more than 3%
- Foreign equity flows
- Foreign investors were net sellers of Indian equities worth Rs 11,363 crore as of September 17