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Rupee Dips as Brent Climbs: Investors Eye RBI Intervention Amid US-Iran Impasse
M
Moneycontrol•28-09-2026, 09:49
Rupee Dips as Brent Climbs: Investors Eye RBI Intervention Amid US-Iran Impasse
- •The rupee opened 7 paise lower at 95.88 against the dollar after Brent crude prices rose over the weekend due to the ongoing US-Iran impasse.
- •Investors are closely watching for potential intervention by the Reserve Bank of India (RBI) to support the currency, as it has been defending the 96-a-dollar level.
- •Brent crude traded over 1% higher at $107 per barrel, and the 10-year US Treasury yield hit a two-decade high above 5.2%.
- •Key US economic data, including September non-farm payrolls and August personal consumption expenditure inflation, will influence market positioning for future US rate hikes.
- •Deutsche Bank anticipates continued liquidity withdrawal through foreign-exchange intervention, with possible debt sales, sell/buy swaps, and a 50-basis-point increase in the cash reserve ratio (CRR).
Key Questions Answered
The Indian rupee opened 7 paise lower at 95.88 against the US dollar on September 28 following a weekend rise in Brent crude prices and an ongoing US-Iran impasse without a breakthrough peace plan, alongside surging 10-year US Treasury yields.
According to Amit Pabari of CR Forex Advisors, Rs 96.10–Rs 96.20 serves as a key resistance zone for the rupee, while a sustained break below Rs 95.70 could steer the currency towards the Rs 95.20–Rs 95.00 range.
Deutsche Bank expects liquidity withdrawal to persist through foreign-exchange intervention, noting that further debt sales, sell/buy swaps, or even a 50-basis-point increase in the cash reserve ratio cannot be ruled out.
