India Rupee Review
Up on RBI's support, dip in crude; dollar demand weighs
This story was originally published at 16:28 IST on 25 September 2026
Register to read our real-time news.Informist, Friday, Sept. 25, 2026
By Divya Moolayattil
MUMBAI – The rupee rose against the dollar, snapping a two days of losses, due to aggressive dollar sales by the Reserve Bank of India, dealers said. A slight fall in crude oil prices also provided limited support to the Indian unit. However, demand for dollars from importers, and a higher dollar index and US Treasury yields put pressure on the rupee, they said.
"There were heavy flows in the market today because it was Friday and banks are going on strike from Monday. Dollar selling was partially by the RBI, while some of it was corporate inflows," a dealer at a private sector bank said.
The rupee settled at 95.8125 a dollar Friday, up from 95.9550 a dollar Thursday. The rupee moved in a narrow range of range of 18 paise during the day. Other Asian currencies also rose against the dollar, with the South Korean won being the best performer, followed by the Philippine peso.
Most dealers had expected the rupee to cross the psycologically crucial 96.00 mark due to importers' demand during the day, but the RBI kept the rupee under control. The central bank has been actively intervening in the spot market this week, with dollar sales of around $1.5 billion on a daily basis, according to the average of estimates from eight banks.
The RBI did not allow the Indian unit to fall on Friday despite all the factors being negative for the rupee. The rupee hit a high of 95.8025 a dollar Friday.
Brent crude oil prices fell slightly to around $105 a barrel Friday amid reports that the US and Iran were discussing a phased deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. US and Iranian negotiators were reportedly exploring the arrangement on the sidelines of the United Nations General Assembly in New York, with Qatari officials mediating the talks.
At 1530 IST, Brent crude was at $105.30 a barrel, down from $106.60 Thursday. Brent traded in a range of $101-$108 in the previous session amid uncertainty over diplomatic efforts to resolve the conflict, keeping market participants cautious. Brent crude for November delivery rose 5% this week.
However, banks bought dollars for oil marketing companies and other importers, which weighed on the rupee. Importers bid aggressively during the fixing window because of the month-end payment obligation, dealers said.
The dollar index fell slightly, but remained near a two-month high as elevated crude oil prices and resilient US economic data stoked concerns about inflation and strengthened expectations of further tightening by the US Federal Reserve. At 1530 IST, the dollar index was at 101.10, down from 101.25 Thursday.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 95.8125 | 95.9050 | 95.8350 | 95.9750 | 95.9550 |
| 1-year dlr/rupee fwd (paise) | 329.52 | 330.56 | 338.78 | 328.16 | 329.75 |
FORWARDS
The one-year dollar-rupee forward premium erased all gains after rising to a more than four-month high of 3.52% intraday Friday, as US Treasury yields remained elevated despite easing slightly, dealers said.
The US 10-year Treasury yield eased below 5.20% Friday but remained close to its highest level since 2007, while the 30-year yield hovered around 5.48%, near its highest level since 2004. Elevated crude oil prices and resilient US economic data have stoked inflation concerns and strengthened expectations of further tightening by the Federal Reserve.
The one-year dollar-rupee forward premium also rose sharply intraday as dealers speculated that the Reserve Bank of India likely conducted sell-buy swaps to absorb surplus rupee liquidity from the banking system, dealers said. Net liquidity absorbed by the RBI, a proxy for the banking system's liquidity surplus, fell to INR 4.27 trillion Thursday from INR 4.34 trillion Wednesday.
The one-year exact-period dollar-rupee forward premium was 3.43%, down from 3.44% at Thursday's close. In absolute terms, the premium was 329.51 paise, compared with 329.75 paise Thursday.
OUTLOOK
The foreign exchange market is shut on Saturdays. On Monday, the rupee will continue to take cues from movements in crude oil prices amid evolving developments in West Asia, dealers said. Most dealers expect the Indian unit to remain under pressure as long as Brent crude prices stay over $100 per barrel.
However, dealers said the volumes in the market will be much less than usual on Monday as the United Forum of Bank Unions has called a nationwide three-day bank strike from Sept. 28 to 30.
The Indian currency will also continue to take cues from movement in the dollar index, they said. Traders remain cautious ahead of the RBI's Monetary Policy Committee meeting scheduled for Oct 5-7. The market expects the panel to hike the repo rate by 25 basis points to contain inflation pressures.
Dealers see strong technical support for the Indian currency at 95.95 per dollar. The rupee is likely to move in a range of 95.70-95.95 against the dollar Monday.
India Rupee - World FX: Dollar near 2-month high on rate hike bets; yen up
| AT 1400 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3232 | 1.3241 | 1.3209 | 1.3212 |
| EUR/USD | 1.1390 | 1.1394 | 1.1368 | 1.1377 |
| NZD/USD | 0.5668 | 0.5672 | 0.5651 | 0.5660 |
| AUD/USD | 0.7026 | 0.7030 | 0.7004 | 0.7011 |
| USD/JPY | 158.2160 | 158.8620 | 157.9540 | 158.8290 |
| USD/CAD | 1.4147 | 1.4155 | 1.4140 | 1.4140 |
| EUR/JPY | 180.2140 | 180.7500 | 179.7800 | 180.6900 |
| CHF/USD | 1.2063 | 1.2083 | 1.2051 | 1.2072 |
| EUR/CHF | 0.9442 | 0.9450 | 0.9418 | 0.9417 |
MUMBAI – The dollar index fell slightly, but remained near a two-month high as elevated crude oil prices and resilient US economic data stoked concerns over inflation and strengthened expectations of further tightening by the US Federal Reserve. At 1400 IST, the dollar index was at 101.11, down from 101.25 Thursday.
Brent crude oil prices fell slightly amid reports that the US and Iran were discussing a phased deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Futures for November delivery touched $108 a barrel late Thursday after Iran-aligned Houthis in Yemen launched missiles toward Saudi cities. At 1400 IST, Brent crude was at $105.90 a barrel, down from $106.60 at closing Thursday.
The euro rose marginally to $1.139 Friday, but remained at its two-month low. The British pound rebounded to $1.323 per dollar after hitting its lowest level in almost three months against the dollar Thursday.
The Japanese yen strengthened 0.6% to 158.24 per dollar Friday, recovering from two-week lows and snapping a five-session losing streak after Finance Minister Satsuki Katayama said US President Donald Trump had expressed concerns about the yen during a meeting with Prime Minister Sanae Takaichi earlier this week. Katayama said she would continue coordinating with her US counterpart Scott Bessent after Japan and the US carried out their first coordinated yen-buying intervention since 1998 in late July.
The Canadian dollar fell 0.2% to 1.415 per dollar, while the Australian dollar rose 0.2% to 1.422 per dollar. (Divya Moolayattil)
India Rupee: Premiums pare some gains on high US ylds; RBI's FX swaps support
| AT 1330 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 95.8350 | 95.9050 | 95.8350 | 95.9750 | 95.9550 |
| 1-year dlr/rupee fwd (paise) | 331.56 | 330.56 | 338.78 | 329.20 | 329.75 |
MUMBAI – The one-year dollar-rupee forward premium erased some gains after rising to a more than four-month high of 3.52% intraday Friday, as US Treasury yields remained elevated despite easing slightly, dealers said.
"US yields and Japanese yields are at multi-decade highs. That is showing an impact on our premiums today," a dealer at a public sector bank said.
The US 10-year Treasury yield eased below 5.20% Friday but remained close to its highest level since 2007, while the 30-year yield hovered around 5.48%, near its highest level since 2004. Elevated crude oil prices and resilient US economic data have stoked inflation concerns and strengthened expectations of further tightening by the Federal Reserve.
The one-year dollar-rupee forward premium also rose sharply intraday as dealers speculated that the Reserve Bank of India likely conducted sell-buy swaps to absorb surplus rupee liquidity from the banking system, dealers said. Net liquidity absorbed by the RBI, a proxy for the banking system's liquidity surplus, fell to INR 4.27 trillion Thursday from INR 4.34 trillion Wednesday.
The one-year exact-period dollar-rupee forward premium was 3.46%, up from 3.44% at Thursday's close. In absolute terms, the premium was 331.56 paise, compared with 329.75 paise Thursday. (Divya Moolayattil)
India Rupee: Rises on likely RBI dollar sales; fall in crude oil price helps
| AT 1130 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 95.8675 | 95.9050 | 95.8400 | 95.9750 | 95.9050 |
MUMBAI – The rupee rose against the dollar as public sector banks sold the greenback, likely on behalf of the Reserve Bank of India, dealers said. The RBI's intervention has made sure that the rupee remained below the psychologically crucial 96.00 per dollar mark.
"Although there are no aggressive dollar sales, their protection mode is on. The RBI sold dollars at 95.94 and 95.90," a dealer at a public sector bank said. According to dealers from six banks, the central bank has sold an average of over $1.5 billion on a daily basis for the last week.
The Indian rupee also gained limited support as crude oil prices edged down to $105 a barrel Friday. Brent crude prices dipped on reports that the US and Iran were planning a phased deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Brent crude for November delivery had risen to $109 per barrel late Thursday after Iranian-backed Houthis attacked cities in Saudi Arabia. At 1130 IST, Brent crude for November delivery was $105.26 a barrel, down from $106.60 Thursday.
Meanwhile, importers also bought dollars actively, which weighed on the Indian unit. The dollar index also remained near two-month high for fourth consecutive day on prospects of rate hike by Federal Reserve in October meeting, which put further pressure on the Indian unit.
For the rest of the day, the rupee is seen moving in a range of 95.75-96.00 a dollar. Dealers see immediate technical resistance for the rupee at 95.75 a dollar. (Divya Moolayattil)
India Rupee: Inches up as crude oil falls a bit; importers' demand may weigh
| AT 0930 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 95.9225 | 95.9050 | 95.8975 | 95.9375 | 95.9550 |
MUMBAI – The rupee fell slightly against the dollar as crude oil prices slipped to $105 per barrel amid reports that the US and Iran were discussing a phased deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Prices had touched $108 a barrel late Thursday after the Iran-aligned Houthis in Yemen attacked Saudi Arabia.
At 0925 IST, Brent crude oil for November delivery traded at $105.58 a barrel, down from $106.60 at the closing Thursday. "There are some efforts to end the war from both sides, so the crude prices went down, which is why rupee (USD/INR) opened lower today," a dealer at a public sector bank said.
Dealers said if the rupee breaches 96.00 a dollar level, stop losses on short dollar bets will be triggered and the rupee could easily fall further to 96.20 a dollar. Dealers expect banks to buy dollars for importers actively, which will put pressure on the rupee during the day. However, the Reserve Bank of India may intervene to limit the decline in the Indian unit.
For the rest of the day, the rupee is seen in a range of 95.90-96.20 a dollar. Dealers see immediate technical support for the rupee at 96.00 a dollar. (Divya Moolayattil)
India Rupee: Expected range for rupee - Sept 25
MUMBAI – Following are the support and resistance levels expected for the rupee Friday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| Public-sector bank | 96.10 | 95.80 |
| Private-sector bank | 95.25 | 95.90 |
| Private-sector bank | 96.10 | 95.70 |
| Private-sector bank | 96.25 | 95.80 |
| Private-sector bank | 96.10 | 95.75 |
| Foreign bank | 96.20 | 95.90 |
| Foreign bank | 96.25 | 95.90 |
| Foreign bank | 96.10 | 95.75 |
| Brokerage firm | 96.15 | 95.80 |
| Brokerage firm |
96.10 |
95.70 |
(Divya Moolayattil)
India Rupee - Asia FX: Inch up as crude falls; strong dollar index weighs
MUMBAI – Asian currencies rose slightly against the dollar as crude oil prices fell a bit to $105 per barrel Friday amid reports that the US and Iran were discussing a phased deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports.
Brent crude for November delivery touched $108 a barrel late Thursday after Iran-aligned Houthi militants in Yemen launched missiles toward Saudi cities. At 0830 IST, Brent crude was at $105.82 a barrel, down from $106.60 Thursday. Brent traded in a range of $101-$108 a barrel in the previous session amid uncertainty over statements to resolve the conflict, keeping market participants cautious.
The dollar index remained near a two-month high as elevated oil prices and robust US economic data stoked inflation concern. At 0830 IST, the dollar index was at 101.24, compared with 101.25 on Thursday.
The Thai baht was broadly steady against the dollar at 33.43 per dollar Friday. The Philippine peso rose 0.1% to 62.63 a dollar, snapping losses of two consecutive days after it inched towards an all-time low of 62.83 per dollar.
The Taiwan dollar rose 0.2% to 31.73 a dollar. While the South Korean won rose the most among Asian peers. The won was up 0.5% to 1358.52 a dollar Friday. However, market remain cautious amid rising US long-term Treasury yields, which could spill over into domestic interest rate hikes. (Divya Moolayattil)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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