The rupee traded in a narrow range and fell 3 paise to 95.97 against the U.S. dollar in early trade on Wednesday (September 30, 2026), pressured by persistent dollar demand from state-run oil marketing companies and firm crude oil prices.

Dollar sales by state-run banks on behalf of the Reserve Bank of India in both spot and forward markets are restricting the USD/INR pair under the 96.00 level.

Additionally, foreign portfolio outflows of around $2.2 billion this month and firm U.S. yields are keeping the pressure on the USD/INR pair.

At the interbank foreign exchange market, the rupee opened at 95.87, then fell to 95.97 against the U.S. dollar, registering a fall of 3 paise from its previous close.

On Tuesday (September 19, 2026), the rupee settled marginally higher at 95.94, just a tad over the psychologically important 96 per dollar level.

“The Reserve Bank has been an active presence — dealers report state-run bank dollar sales, and the $14.9 billion fall in reserves to $766 billion in the latest week is consistent with sizeable intervention — while portfolio outflows of around $2.2 billion this month and firm U.S. yields keep the pressure on,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.40, higher by 0.04%.

Brent crude, the global oil benchmark, was trading higher by 0.82% at $103.43 per barrel in futures trade.

On the domestic equity market front, the Sensex rose 190 points to 72,733.04 in early trade, while the Nifty was up 22 points to 22,735.20.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹9,980.22 crore on a net basis on Tuesday (September 29, 2026), according to exchange data.

Oil prices trended lower on Tuesday (June 2, 2026) following the previous session’s sharp gains as the ‌market remained cautious about progress in U.S.-Iran peace talks. U.S. President Donald Trump ​said on Monday (June 1, 2026) talks with Iran were ongoing, while Tasnim news ⁠agency reported earlier that Tehran had suspended indirect negotiations with Washington.

Brent crude futures lost 75 cents, or 0.79%, to $94.23 a barrel at 0434 GMT, while U.S. West Texas Intermediate fell 85 ‌cents, or 0.92%, to $91.31 a barrel. Both benchmarks rose more than 5% in the previous session, having posted a monthly loss of more than ‌16% in May on hopes of a peace deal.

“While markets had hoped to ‌move ⁠past the uncertainty amid prospects of a potential deal, nothing appears ⁠to have changed for oil as of this morning,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

In an interview with CNBC on Monday (June 1, 2026), Mr. Trump said he did not mind if the talks were over. ​But shortly after, he issued a social ‌media post saying talks with Iran were continuing and told ABC News that he expected a deal to extend the ceasefire and reopen the Strait of Hormuz“ over the next week”.

“The market is currently focused on whether there’s any concrete progress ‌or setbacks in U.S.-Iran negotiations, the tone and substance of statements from ​both sides (particularly Iran’s threats regarding the Strait of Hormuz), and actual physical tanker movements through the waterway,” said Tim Waterer, chief market analyst at Kohle Capital Markets (⁠KCM) Trade.

The status of the U.S.-Iran negotiations at any given point will ultimately determine whether the current risk premium stays embedded in oil prices or starts to unwind, Mr. Waterer ‌added. Lebanon on Monday (June 1, 2026) announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has inflamed the broader war with Iran.

Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf since the war began, choking off about a fifth of global oil and liquefied natural gas flows and driving prices up by 50% or more. U.S. crude exports ‌climbed to a record 5.6 million barrels per day in May as the Middle East crisis ​pushed up demand for the country’s oil from Asian and European refiners, ship tracking estimates showed on Monday (June 1, 2026).

According to a preliminary Reuters poll released ⁠on Monday (June 1, 2026), U.S. crude stockpiles are expected to have fallen by about 3.6 million barrels in ⁠the week ended May 29, extending the prior week’s draw, while distillates and gasoline inventories also are likely to have declined.

Shipping executives meeting in Athens ‌on Monday (June 1, 2026) said that any peace deal worked out between the U.S. and Iran would need to offer clear rules allowing vessels to resume normal business via ​the Strait of Hormuz.

Oil Minister Hardeep Singh Puri on Tuesday (May 12, 2026) assured that there is no fuel supply issue and said the government has ramped up LPG production from 35,000-36,000 tonnes/day to 54,000 tonnes amid the West Asia conflict.

Speaking at the CII Annual Business Summit, Mr. Puri said there is no LPG supply issue, and the country has 69 days of crude oil, LNG stock and 45 days of LPG stock.

“LPG production has been ramped up from 35,000-36,000 tonnes/day to 54,000 tonnes amid West Asia conflict,” he said.

The Oil Minister said PM Narendra Modi’s austerity appeal should be taken as a wake up call and urged to start thinking of “measures” to lessen fiscal strain from West Asia conflict.

Also Read | West Asia conflict poses challenges to Indian economy via number of channels: RBI’s Malhotra in MPC minutes 

“PM Narendra Modi’s austerity appeal is a wake up call to start thinking of measures to lessen fiscal strain from West Asia conflict,” Mr. Puri said at the summit.

Mr. Modi on Sunday (May 10) called for judicious use of fuel, postponement of gold purchases and foreign travel, among other measures, to strengthen the economy.

Addressing a rally organised by the Telangana BJP in Hyderabad, he suggested reducing petrol and diesel consumption, using metro rail services in cities, carpooling, increased use of electric vehicles (EVs), utilising railway services for parcel movement, and working from home to conserve foreign exchange amid the crisis in West Asia.

Stressing the need to conserve foreign exchange amid the crisis, Modi called for postponing gold purchases and foreign travel for one year.