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The Indian rupee again slipped against US Dollar after September 17, 2026. On Wednesday, September 30, Indian Rupee slipped 3 paise to 95.97 in early trade. It closed the session on Monday, at Rs. 95.78, and began the Wednesday session at Rs. 95.87 at the interbank foreign exchange market. However, soon after that the fall came.
The primary reason behind Rupee under pressure involves the rising crude oil prices and higher demand for dollars from state-run oil companies. Bent Crude Oil is up 0.82 per cent at USD 103.43 per barrel in futures trade.
While talking about the market condition, head of commodity and currency research, Kotak Securities, Anindya Banerjee stated, “The Reserve Bank has been an active presence, dealers report state-run bank dollar sales, and the USD 14.9 billion fall in reserves to USD 766 billion in the latest week is consistent with sizeable intervention while portfolio outflows of around USD 2.2 billion this month and firm US yields keep the pressure on.”
The currency is also facing pressure from foreign fund outflows. Foreign portfolio investors have pulled out around USD 2.7 billion in September. State-run banks have been selling dollars in the spot and forward markets on behalf of the Reserve Bank of India. This has helped keep the dollar-rupee rate below Rs. 96.
Also Read: Crude Oil Drops to $92, Rupee Jumps 28 Paise Against US Dollar
India imports a large part of the crude oil it needs. When oil prices rise, Indian oil companies need more dollars to pay foreign suppliers. This raises demand for the US currency which puts increased pressure on the Rupee. In simple terms, India needs to spend more rupees to buy the dollars needed for oil imports. This is what is making the Rupee weaker against the dollar.
The impact can grow when other factors are also working against the rupee. Foreign investors selling Indian assets can increase dollar demand, while higher US yields can support the dollar.
