Indian Rupee: Range holds against US Dollar as RBI stays hawkish – Commerzbank

The Indian rupee rose 11 paise to 95.17 against the U.S. dollar in early trading on Thursday, October 29, 2026, as the American currency showed a slight decline following the Federal Reserve's policy announcement. The Federal Reserve kept interest rates steady at 3.75%-4.00%, but the market responded with a mild negative reaction toward the dollar, according to forex traders.

The rupee opened at 95.20 in the interbank foreign exchange market and climbed to 95.17 against the U.S. dollar, marking an 11-paise increase from its prior close. The rupee ended Wednesday at 95.28 against the American currency. Traders cited high crude oil prices and strong U.S. yields as factors hindering the local currency's performance.

While foreign exchange reserves amount to approximately $721 billion, recent improvements in portfolio flows and the Reserve Bank of India's active presence in the market provide support. Anindya Banerjee, head of commodity and currency research at Kotak NEO, anticipates a gradual upward bias in the USD-INR exchange rate, rather than a disorderly move.

The Fed's decision to remain steady has left markets highly sensitive to upcoming data: stronger inflation could bolster expectations of a December rate hike, while weaker numbers might alleviate concerns for gold and emerging-market currencies. Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 102.15, down 0.04%.

Brent crude oil, the global benchmark, fell 1.03% to $114.13 per barrel in futures trading. On the domestic stock market, the Sensex gained 163.03 points to 73,409.06, and the Nifty rose 40.40 points to 22,739.25. Foreign Institutional Investors (FIIs) purchased equities worth ₹871.83 crore on a net basis on Wednesday, October 28, 2026, as per exchange data.