The rupee fell 16 paise to 96.13 against the US dollar in early trade

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The rupee depreciated 16 paise to fall below the psychologically important 96 per dollar level in early trade on Tuesday (Sep 29, 2026), weighed down by higher oil prices and continued outflow of foreign funds.

Forex traders said the rupee was under pressure largely due to a combination of firm crude and rising US nominal and real yields, which together are attracting portfolio flows from emerging markets, including India.

At the interbank foreign exchange market, the rupee opened at 96.03 before falling to 96.13 against the US dollar, down 16 paise from its previous close. On Monday (September 28), the rupee settled at 95.97 against the US currency.

“We could see 96.50 in the coming days and a clear break above 96.50 would open the door to 98. The main support is now at 95.50.

“The domestic picture remains a source of strength – industrial production rose 8% in August – and the Reserve Bank completed a large-scale bond-selling program this month with strong demand keeping adjustments on track,” said Anindya Banerjee, head of commodity and currency research, Kotak Securities.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded at 101.23, up 0.04%.

Brent crude, the global oil benchmark, traded 1.51% higher at $106.87 a barrel in futures amid concerns over disruptions to oil supplies through the Strait of Hormuz.

In the domestic stock market, the Sensex was down 503 points at 72,260.09 in early trade, while the Nifty was down 151 points at 22,626.50.

Foreign institutional investors (FIIs) unloaded stocks worth ₹5,353.22 crore on a net basis on Monday (September 28), according to stock exchange data.

Published – 29 Sep 2026 11:21 IST