The rupee fell 4 paise to 96.39 against the US dollar in early trade

Image is for representational purposes only. | Photo credit: Reuters

The rupee fell 4 paise to 96.39 against the US dollar in early trade on Tuesday (Oct 6, 2026) on higher crude prices and sustained FII outflows.

However, positive sentiment in domestic equity markets and a weaker dollar index cushioned the local unit from further declines, forex traders said.

Also Read: Why is Indian Rupee Depreciating?

In the interbank foreign exchange market, the rupee opened at 96.29 but fell to 96.39, down 4 paise from its previous close.

The rupee weakened by 10 paise to close at 96.35 against the US dollar on Monday (October 6).

“The Reserve Bank protected the rupee from falling to 96.33, but demand for the dollar from FPIs and oil companies did not ease despite crude falling to $100.63 a barrel and the dollar index at 102.12,” said Anil Kumar Bhansali, head of finance and managing director at Finrex Treasury Advisors LLP.

The central bank’s monetary policy committee began its three-day meeting on Monday (Oct 5) and is likely to raise rates by 25 basis points, in line with central banks’ hawkish stance amid an escalating conflict in West Asia that poses risks to domestic inflation.

The last repo rate hike was in February 2023 when the RBI raised the rate by 0.25% to 6.50%. It left the rate unchanged in 2023–24 before starting a rate-cutting cycle in 2025. Currently, RBI’s repo rate is at 5.25%.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded at 102.12, down 0.04%.

Brent crude, the global oil benchmark, traded 0.23% higher at $100.6 a barrel in futures.

In the domestic stock market, the Sensex advanced 120.22 points to 72,535.41 in early trade, while the Nifty also rose 47.15 points to 22,603.10.

Foreign institutional investors (FIIs) folded stocks worth ₹ 4,699.14 crore on a net basis on Monday (October 5), according to stock exchange data.

Published – 06 Oct 2026 10:54 IST