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Rupee Gains 10 Paise Against Dollar as Brent Crude Eases, RBI Review Begins
M
Moneycontrol•05-10-2026, 09:47
Rupee Gains 10 Paise Against Dollar as Brent Crude Eases, RBI Review Begins
- •The rupee opened 10 paise higher at 96.22 against the dollar, supported by an overnight drop in Brent crude prices.
- •The Reserve Bank of India (RBI) begins its bimonthly policy review, with expectations of a 25 basis point rate hike to 5.5 percent.
- •Brent crude cooled to trade above $101 a barrel due to rising exports from West Asia, easing supply concerns.
- •The rupee has been under pressure from surging global bond yields and sustained high Brent prices, with analysts expecting further depreciation towards 96.50.
- •Despite a softer US jobs report, investors remain cautious about inflation risks, suggesting any relief for the rupee from Fed expectations might be short-lived.
Key Questions Answered
The rupee opened 10 paise higher at 96.22 against the dollar, supported by an overnight drop in Brent crude prices that helped boost investor sentiment as the Reserve Bank of India began its bimonthly policy review.
Market participants expect the Monetary Policy Committee to raise interest rates by 25 basis points to 5.5 percent during its bimonthly policy review.
Brent crude cooled overnight to trade above $101 a barrel due to rising exports from West Asia, while the probability of a Federal Reserve rate hike fell to about 20 percent after the US economy added fewer jobs than expected.
