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Rupee Dips to 95.95 Against Dollar Amidst Rising Oil Prices and US Yields
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CNBC TV18•01-10-2026, 09:26
Rupee Dips to 95.95 Against Dollar Amidst Rising Oil Prices and US Yields
- •The Indian rupee weakened by 12 paise to 95.95 per dollar on Thursday, influenced by higher crude oil prices and elevated US Treasury yields.
- •The currency had touched 96.14/$ earlier in the week, with the Reserve Bank of India (RBI) likely intervening to prevent a sustained breach of the 96-per-dollar level.
- •Anil Bhansali of Finrex Treasury Advisors noted that the 96 level remains a crucial psychological and technical area, with RBI intervention containing, but not reversing, the broader pressure.
- •Rising Brent crude prices, up nearly 2% on Wednesday and 14% in September, increase India's import bill and demand for dollars, weighing on the rupee.
- •Elevated 10-year US Treasury yields, near their highest since 2007 despite softer inflation data, also contribute to the rupee's pressure, as persistent inflation concerns keep longer-term US yields high.
Key Questions Answered
The Indian rupee opened weaker at 95.95 per dollar due to higher crude oil prices and elevated US Treasury yields putting ongoing pressure on the currency.
Brent crude rose nearly 2% amid stalled US-Iran talks and tighter fuel markets, increasing India's import bill, while the 10-year US Treasury yield neared its highest level since 2007.
The Reserve Bank of India appears intent on preventing a sustained break above the 96-per-dollar level, with its likely intervention helping limit recent losses and showing currency resilience.
