Archive · 23 Sep 2026
Rupee Gains Against Dollar as Oil Prices Offer Support
The Indian rupee became a little stronger against the US dollar on Tuesday and Wednesday.
On Tuesday, it reached 95.65 rupees per dollar.
On Wednesday, it reached 95.57 rupees per dollar.
Cheaper oil helped because India buys oil from other countries.
Better performance in Indian and Asian stock markets also supported the rupee.
However, the US dollar stayed fairly strong after the Federal Reserve raised interest rates.
Foreign investors also sold Indian shares, which put pressure on the rupee.
Analysts said the rupee could continue moving within a limited range, with the Reserve Bank of India ready to act if it weakens substantially.
The rupee rose 13 paise to 95.65 per US dollar in Tuesday’s early trade, opening at 95.75.
On Wednesday, it gained 5 paise to 95.57 after opening at 95.58, supported by softer crude and stronger Asian currencies.
Lower oil prices, positive domestic equities and easing supply concerns supported the currency on both days.
A firm US dollar after the Federal Reserve’s rate hike and foreign portfolio outflows limited the rupee’s gains.
Analysts expected range-bound trading, with support near 95.50 and 95, and possible RBI intervention near 96.30–96.50.
- Who
- The Indian rupee, the US dollar, the Reserve Bank of India, domestic equity investors and foreign institutional investors were involved; Anindya Banerjee provided the market assessment.
- What
- The rupee strengthened to 95.65 per dollar on Tuesday and 95.57 per dollar on Wednesday in early trading.
- When
- Tuesday and Wednesday morning; the reports cite Monday and Tuesday closing levels respectively.
- Where
- At India’s interbank foreign exchange market, with related trading in domestic equity and global commodity markets.
- Why
- Softer or retreating crude prices, easing supply concerns, positive equity sentiment and a recovery in Asian currencies supported the rupee, while a firm dollar and foreign portfolio outflows constrained gains.
Factors Supporting the Rupee
Factors Pressuring the Rupee
Oil prices and supply
Factors Supporting the Rupee
Retreating or softer crude prices, increased Saudi Arabian exports through the Strait of Hormuz and hopes for partial restoration of the East-West pipeline reduced immediate supply concerns.
Factors Pressuring the Rupee
Brent crude was still trading at elevated levels, including $101.39 per barrel on Tuesday, and future energy-price movements remained a key risk.
Market sentiment
Factors Supporting the Rupee
Indian equities opened higher on both days, while Asian currencies recovered on Wednesday, providing support to the rupee.
Factors Pressuring the Rupee
Foreign institutional investors continued selling Indian equities, including ₹3,809.99 crore on a net basis on Tuesday.
Currency outlook
Factors Supporting the Rupee
Analyst Anindya Banerjee identified rupee support at 95.50 and then 95, while softer crude remained the currency’s main support.
Factors Pressuring the Rupee
The firm dollar after the Federal Reserve’s rate hike could limit gains; Banerjee identified 96.30 as an upper barrier and expected Reserve Bank of India intervention near 96.30–96.50.
- Tuesday early rate
- 95.65 rupees per US dollar, up 13 paise
- Wednesday early rate
- 95.57 rupees per US dollar, up 5 paise
- Wednesday Brent crude
- $98.27 per barrel, down 0.99%
- Tuesday Brent crude
- $101.39 per barrel, up 1.05% in futures trade
- Dollar index
- 100.35 on Tuesday and 100.70 on Wednesday
- Foreign investor selling
- ₹576.20 crore on Monday and ₹3,809.99 crore on Tuesday
- Infrastructure-sector growth
- Reported at 4.8% in August, down from 5% in July and 6.2% a year earlier
