The rupee fell 3 paise to 95.91 against the U.S. dollar in early trade on Wednesday (September 16, 2026), facing pressure from a strong American currency and outflow of foreign funds.

Positive domestic equity markets, however, supported the local currency, even as crude oil prices remained elevated amid heightened tension in West Asia, forex traders said.

At the interbank foreign exchange market, the rupee opened at 95.89 against the U.S. dollar and fell further to 95.91, trading 3 paise lower from its previous close.

The rupee settled 34 paise lower at 95.88 against the American currency on Tuesday (September 15, 2026), after weakening by 113 paise or more than 1% in the preceding five sessions since the closing level of 94.43 recorded on September 4.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.38, higher by 0.04%.

The higher dollar index was attributed to market expectations of a hike in interest rates by the U.S. Federal Reserve, which will announce its monetary policy decision on Wednesday (September 16, 2026).

Experts said that the Fed is likely to hike the funds rate for the first time in three years in an effort to rein in inflation triggered by higher oil prices.

Brent crude, the global oil benchmark, was trading lower by 0.58% but remained elevated at $108.12 per barrel in futures trade.

According to analysts, global oil markets have been roiled by fresh tensions in West Asia 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.

On the domestic equities market front, Sensex climbed 240.75 points, or 0.33%, to 74,244.57 in morning trade, while the Nifty gained 83.70 points,or 0.36% to 23,202.30.

Foreign institutional investors (FIIs) offloaded equities worth ₹2,977.86 crore on a net basis on Tuesday (September 15, 2026), according to exchange data.

The rupee witnessed range-bound trade on Wednesday (October 8, 2025) and settled for the day lower by three paise at 88.80 (provisional) against the U.S. dollar, tracking a negative trend in domestic equities amid a rise in risk-off sentiments.

Forex traders said the U.S. dollar is holding its ground, yet beneath the dollar’s steady facade lies a growing tension.

The rupee is likely to remain within a narrow range, supported by domestic triggers such as IPO-related inflows, and potential progress in US–India trade talks could gradually tilt sentiment in the rupee’s favour.

At the interbank foreign exchange, the rupee opened at 88.76 against the U.S. dollar, touched an intraday low of 88.81 and finally settled for the day at 88.80 (provisional), registering a loss of 3 paise over its previous close.

On Tuesday (October 7, 2025), the rupee fell three paise to close at 88.77 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.88, higher by 0.31%.

Brent crude, the global oil benchmark, was trading 1.25% higher at $66.27 per barrel in futures trade.

Foreign institutional investors purchased equities worth ₹1,440.66 crore on a net basis on Tuesday (October 7, 2025), according to exchange data.

On the domestic equity market front, the Sensex dropped 153.09 points to settle at 81,773.66, while the Nifty declined 62.15 points to 25,046.15.

Meanwhile, Commerce and Industry Minister Piyush Goyal said on Tuesday (October 8, 2025) that India and the U.S. are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities exist to meet the November deadline for concluding the talks.

On the possibility of the next round of trade negotiations in a physical mode, he said that every possibility exists, but with the U.S. government currently in shutdown mode, it remains to be seen how, where, and when the next round of talks can take place.

The rupee consolidated in a narrow range to settle 3 paise lower at an all-time low of 88.82 (provisional) against the U.S. dollar on Monday (October 6, 2025) as a strengthening greenback in the overseas market and an overnight jump in crude oil prices pressurised the domestic unit.

The USD/INR pair witnessed range-bound trade and settled 3 paise lower as support from positive domestic equities was offset by continued capital outflows and geopolitical developments, according to traders.

At the interbank foreign exchange, the rupee opened at 88.75 against the U.S. dollar, and settled for the day at 88.82, a loss of 3 paise over its previous close.

On Friday (October 3), the rupee depreciated eight paise to close at 88.79 against the U.S. dollar.

On September 30, the rupee had fallen to an all-time low of 88.80 against the U.S. dollar.

“We expect the rupee to trade with a positive bias on strength in the domestic markets and overall weakness in the U.S. Dollar. A weak tone in global crude oil prices may also favour the rupee. However, importer demand for the dollar may cap sharp gains. USD/INR spot price is expected to trade in a range of 88.50 to 89,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.43, higher by 0.73%.

Brent crude, the global oil benchmark, was trading 1.61% higher at $65.58 per barrel in futures trading.

Meanwhile, External Affairs Minister S. Jaishankar on Sunday (October 5, 2025) said that any trade deal between India and the U.S. must respect New Delhi’s “red lines” and efforts are underway to reach an understanding.

In an interactive session at an event, Mr. Jaishankar acknowledged that there were “issues” between India and the U.S., and many of them were linked to the inability to firm up the proposed trade deal, even as he noted that “there are things you can negotiate and there are things you can’t”.

The External Affairs Minister said that both sides have not yet arrived at a “landing ground” on trade discussions and that an understanding is necessary, as the U.S. is the world’s largest market. But at the same time, Mr. Jaishankar said India’s red lines should be respected.

On the domestic equity market front, Sensex jumped 582.95 points to settle at 81,790.12, while Nifty rallied 183.40 points to 25,077.65.

Foreign institutional investors offloaded equities worth ₹1,583.37 crore on a net basis on Friday (October 3), according to exchange data.

Meanwhile, India’s foreign exchange reserves decreased by $2.334 billion to $700.236 billion during the week ended September 26, according to the RBI data on Friday (October 3).

In the previous reporting week, the kitty had declined by $396 million to $702.57 billion.

Meanwhile, on the domestic macroeconomic front, the growth of India’s services sector eased in September from the recent high in August, as new business and activity expanded at slower rates, according to a monthly survey released on Monday (October 6, 2025).

The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 60.9 in September, from a 15-year high of 62.9 in August, amid competitive conditions and cost-control measures.