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The rupee stayed weak for the seventh consecutive session, declining 7 paise to 95.95 (provisional) against the U.S. dollar on Wednesday (September 16, 2026), tracking a strong greenback overseas and foreign fund outflows.
Forex traders said the rupee’s slide was capped by positive domestic equity markets, even as crude oil prices remained elevated amid escalating U.S.-Iran conflict.
At the interbank foreign exchange market, the rupee opened at 95.89 and moved in the range of 95.85 to 95.98 against the greenback. The unit finally settled 7 paise lower at 95.95 (provisional) against the American currency.
The local unit ended 34 paise lower at 95.88 against the American currency on Tuesday (September 15), after weakening by 113 paise, or more than 1%, in the preceding five sessions since the closing level of 94.43 on September 4.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the local currency declined on a positive dollar ahead of the Federal Open Market Committee (FOMC) decision.
“Elevated crude oil prices and rising U.S. Treasury yields also pressurised the rupee. Rising crude oil prices have led to higher demand for dollars by importers. However, positive domestic markets cushioned the downside,” Mr. Choudhary said, adding that “USD-INR spot price is expected to trade in a range of ₹95.75 to ₹96.20”.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% higher at 99.38.
The dollar strengthened amid market expectations of a interest rate hike by the U.S. Federal Reserve, which will announce its monetary policy decision later today.
Brent crude, the global oil benchmark, was trading lower by 1.14% but remained elevated at $107.51 per barrel in futures trade.
According to analysts, oil prices surged as the West Asia conflict flared up after attacks from Iranian-backed Houthi rebels in Yemen against Saudi Arabia’s shipping and infrastructure. Traders fear the escalating conflict could disrupt Saudi oil exports out of the Red Sea.
In domestic equities, Sensex rose 332.63 points, or 0.45%, to settle at 74,336.45, while the Nifty advanced 99.00 points, or 0.43%, to 23,217.60.
Foreign institutional investors (FIIs) offloaded equities worth ₹2,977.86 crore on a net basis on Tuesday (September 15), according to exchange data.
Published – September 16, 2026 05:43 pm IST
