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Rupee Gains Against Dollar as Oil Prices Ease, Fed Rate Hike Bets Recede
M
Moneycontrol•05-10-2026, 09:02
Rupee Gains Against Dollar as Oil Prices Ease, Fed Rate Hike Bets Recede
- •The Indian rupee opened higher at 96.22 per dollar on October 5, strengthening by 10 paise from its previous close of 96.32.
- •Softer oil prices and reduced expectations of an October Federal Reserve rate hike contributed to the rupee's appreciation.
- •Finrex predicted the rupee to open at 96.16, with oil prices at 101.40 and the dollar index at 102.12.
- •Despite potential RBI action, dollar buying by oil companies and FPIs remaining in sell mode are expected to continue.
- •Asian currencies mostly strengthened against the US dollar, with the Indonesian rupiah, Taiwan dollar, and Philippine peso leading gains, while the Singapore dollar, South Korean won, and Malaysian ringgit weakened.
Key Questions Answered
The Indian rupee opened 10 paise higher at 96.22 per dollar on October 5, supported by softer oil prices and the paring of bets regarding an October Federal Reserve rate hike.
The market is factoring in a 25 basis point rate hike by the Reserve Bank of India as the MPC meeting commences in Mumbai.
Asian currencies mostly strengthened against the US dollar, led by the Indonesian rupiah gaining 0.47%, along with gains in the Taiwan dollar, Philippine peso, Japanese yen, Chinese renminbi, and Thai baht.
