Archive · 29 Sep 2026
Rupee Falls Below 96 as Oil Prices Breach $107
The Indian rupee became weaker compared with the US dollar on Tuesday.
It fell below the level of 96 rupees for one dollar.
Oil prices rose above $107 for a barrel, making it more expensive for India to buy oil from other countries.
This can make India’s import bill larger.
The US dollar also became stronger because US interest rates and bond returns were high.
Traders said the Reserve Bank of India acted to slow the rupee’s fall.
A report said the central bank may raise interest rates by 50-75 basis points in the next six months.
Indian stock markets also fell during trading.
The Indian rupee opened at 96.05 per dollar and weakened to 96.14, near a two-month low.
Brent crude futures rose above $107 a barrel, increasing pressure on India’s import bill and current account deficit.
A stronger dollar, elevated US Treasury yields and expectations of further Federal Reserve tightening weighed on the rupee.
Traders said the Reserve Bank of India intervened to limit the currency’s decline.
Axis Mutual Fund said the Reserve Bank of India could raise rates by 50-75 basis points over the next six months.
- Who
- The Indian rupee, traders, the Reserve Bank of India, the US Federal Reserve and foreign investors were involved.
- What
- The rupee weakened below 96 per US dollar as crude oil prices exceeded $107 a barrel and Indian stocks declined.
- When
- Tuesday; the report also cites foreign-investor data for September 28.
- Where
- India’s currency and equity markets; global oil and US dollar markets also affected trading.
- Why
- Higher oil prices, a stronger dollar, elevated yields and expectations of further US Federal Reserve tightening increased pressure on the rupee.
- Rupee opening rate
- 96.05 per US dollar
- Rupee intraday low
- 96.14 per US dollar
- Brent crude
- Above $107 per barrel
- US 10-year yield
- Around 5.25%
- Possible RBI rate increase
- 50-75 basis points over six months
- Sensex
- Down 359.35 points, or 0.48%, at 72,412.27
- Nifty 50
- Down 106.45 points, or 0.47%, at 22,673.80
- Foreign equity flows
- Net selling of Rs 4,907.78 crore, according to NSE data for September 28