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Rupee Dips to 96.05 Against Dollar: US Yields, Oil Prices Drive Decline
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CNBC TV18•29-09-2026, 09:30
Rupee Dips to 96.05 Against Dollar: US Yields, Oil Prices Drive Decline
- •The Indian rupee opened at ’96.05 against the US dollar, a 7-paise decline from Monday’s close, influenced by higher US yields and elevated oil prices.
- •The ’96-per-dollar level is a critical near-term support, with market participants anticipating Reserve Bank of India (RBI) intervention if pressure continues.
- •Rising US Treasury yields, nearing a two-decade high, and persistently high crude oil prices due to West Asia supply disruptions are key factors pressuring the rupee.
- •Hawkish Federal Reserve expectations, with a nearly 70% probability of another rate hike in October, are strengthening the dollar index.
- •The RBI is expected to intensify intervention to defend the ’96-per-dollar level, leveraging recent foreign exchange reserve build-up and broader liquidity operations.
Key Questions Answered
The Indian rupee opened lower at 96.05 against the US dollar, marking a 7-paise decline from its previous close, weighed down by higher US yields and elevated oil prices.
Market participants expect the RBI to remain active in the currency market to manage volatility, with analysts noting greater room for intervention following a recent build-up in foreign exchange reserves.
The 10-year US Treasury yield climbed to 5.24% due to inflation concerns from surging oil prices, while markets priced in a nearly 70% probability of an October Federal Reserve rate hike, pushing the dollar index near a two-month high.
