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Rupee Plunges to Two-Month Low Against US Dollar Amid Global Market Turmoil
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News18•01-10-2026, 16:15
Rupee Plunges to Two-Month Low Against US Dollar Amid Global Market Turmoil
- •The rupee closed at 96.31 against the US dollar, a 37 paise slump and its lowest level in over two months, driven by global risk aversion and rising bond yields.
- •Forex traders anticipate continued negative bias for the rupee due to global market uncertainty, increasing treasury yields, and a strong dollar.
- •Factors like surging global crude oil prices and potential uncertainty surrounding the US-Iran deal could further pressure the Indian currency.
- •The dollar index rose by 0.45 percent to 101.90, while Brent crude futures increased by 2.54 percent to USD 100.52 per barrel.
- •Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,148.41 crore, contributing to a significant drop in both Sensex and Nifty.
Key Questions Answered
The rupee slumped 37 paise to close at 96.31 against the US dollar due to global risk aversion, surging global treasury yields, and selling pressure from foreign investors.
During the rupee's decline, the Sensex dropped 570.59 points to settle at 71,909.70, while the Nifty tanked 198.50 points to 22,421.95.
India's manufacturing sector activity growth hit a seven-month high in September, with the HSBC India Manufacturing PMI rising to 55.1 from 52.8 in August, driven by accelerating new orders and output.
