Archive · 1 Oct 2026
Rupee Falls 3 Paise as RBI Holds 96 Level
The Indian rupee became slightly weaker against the US dollar.
It fell three paise to 95.97 in early trading.
State-run oil companies needed dollars, which increased demand for the US currency.
Foreign investors were also selling Indian investments.
Higher US yields and a stronger dollar added more pressure.
The Reserve Bank of India sold dollars through state-run banks to support the rupee.
This helped keep the exchange rate below the important 96.00 level.
Oil prices and Indian share markets also moved lower.
The rupee opened at 95.95 and fell to 95.97 against the US dollar in early Thursday trading.
Dollar demand from state-run oil companies, foreign portfolio outflows and firm US yields pressured the rupee.
RBI-backed dollar sales through state-run banks in spot and forward markets limited the decline.
The dollar index rose 0.09% to 101.54, near a reported two-month high.
Brent crude and Indian equities declined, while foreign investors sold ₹10,148.41 crore of equities on Wednesday.
- Who
- The Indian rupee, the Reserve Bank of India, state-run oil companies, foreign portfolio investors and currency-market participants.
- What
- The rupee weakened three paise to 95.97 against the US dollar, while RBI-backed dollar sales limited its decline.
- When
- Thursday, October 1, in early trading; the rupee had settled at 95.94 on Wednesday.
- Where
- The movement occurred in the interbank foreign exchange market in Mumbai.
- Why
- Dollar demand, foreign portfolio outflows, firm US yields and a stronger dollar pressured the rupee, while RBI intervention contained losses.
Market Pressure
RBI Support
Direction of the rupee
Market Pressure
Dollar demand from state-run oil companies, foreign portfolio outflows, firm US yields and a stronger dollar pushed the rupee lower.
RBI Support
RBI-backed dollar sales through state-run banks reduced the currency's losses.
The 96.00 threshold
Market Pressure
Continuing market pressure increased the risk of the exchange rate moving beyond 96.00.
RBI Support
Dollar supplies in spot and forward markets kept the exchange rate below 96.00.
- Opening rate
- 95.95 per US dollar
- Early-trade rate
- 95.97 per US dollar
- Previous close
- 95.94 per US dollar on Wednesday
- Dollar index
- 101.54, up 0.09%
- Brent crude
- $96.87 per barrel, down 1.18%
- Indian equities
- Sensex at 72,257.30 and Nifty at 22,518.90 in early trade
- Foreign institutional selling
- ₹10,148.41 crore net on Wednesday
