Rupee falls 16 paise to 96.13 against U.S. dollar in early trade
Forex traders said the rupee is under pressure largely due to the combination of firm oil and rising U.S. nominal and real yields, which together are drawing portfolio flows out of emerging markets, including India
The Indian rupee experienced a significant decline on Tuesday (September 29, 2026), falling 16 paise to 96.13 against the U.S. dollar in early trade, as reported by forex traders. The currency slipped below the psychologically important level of 96 per dollar, driven by rising crude oil prices and persistent foreign fund outflows. The interbank market saw the rupee open at 96.03 and decline to 96.13 against the U.S. dollar, marking a 16-paise drop from the previous close.
On Monday (September 28), the rupee had settled at 95.97 against the American currency, indicating a further decline. Analysts predict the rupee could reach 96.50 in the coming days, with a clear break above this level potentially paving the way for the rupee to surpass 98 against the dollar. Major support is currently at 95.50.
Despite domestic factors such as industrial output growth of 8% in August, the rupee's weakness is attributed to external influences, primarily the combination of high oil prices and rising U.S. nominal and real yields. These factors are prompting portfolio flows out of emerging markets, including India. The Reserve Bank of India completed a significant bond sale program this month with strong demand, contributing to a more orderly adjustment, according to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, traded at 101.23, up 0.04%. Brent crude, the global oil benchmark, surged 1.51% to $106.87 per barrel due to concerns over potential disruptions to crude supplies through the Strait of Hormuz. The domestic equity market also faced pressure, with the Sensex falling 503 points to 72,260.09 and the Nifty dropping 151 points to 22,626.50.
Foreign Institutional Investors (FIIs) netted a large-scale equity outflow of ₹5,353.22 crore on Monday (September 28), as per exchange data.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Rupee Opens 16 Paise Lower At 96.13 Against The US Dollar, Early Trade Sees Further Weakness freepressjournal.in
- Rupee falls 16 paise to 96.13 against US dollar in early trade thehindubusinessline.com
