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Rupee Opens Flat at 96.42 Per Dollar Ahead of Key RBI Policy Outcome
M
Moneycontrol•07-10-2026, 09:02
Rupee Opens Flat at 96.42 Per Dollar Ahead of Key RBI Policy Outcome
- •The Indian rupee opened flat at 96.42 against the US dollar as investors awaited the crucial Reserve Bank of India policy decision.
- •Markets anticipate a potential interest rate hike by the central bank alongside measures to manage surplus banking system liquidity.
- •Global oil prices climbed to 101.50 dollars per barrel following supply concerns, keeping pressure on the local currency.
- •Asian currencies showed mixed movements against the dollar, with the Japanese yen emerging as the biggest laggard.
Key Questions Answered
The Indian rupee opened flat at 96.42 per dollar, matching its previous close, as investors awaited the Reserve Bank of India's monetary policy outcome.
Oil prices rose to $101.50 per barrel following a refinery explosion in Venezuela and attacks in the Strait of Hormuz. Sustained high oil prices above $100 continue to drive import demand for dollars, keeping the rupee under pressure.
The RBI is expected to deliver a rate hike of 25 bps, with an outside chance of 50 bps, and may raise the CRR by 1% to 4% to absorb excess banking liquidity.
