The Indian rupee fell for a third consecutive session on October 26, 2026, closing at 95.1850 per US dollar as importers increased dollar purchases. The currency lost 0.3% on Monday and about 0.8% over three sessions, with elevated oil prices and foreign equity outflows adding pressure.
Key Takeaways
- Importer dollar demand weighed on the rupee as recent sources of support faded.
- Brent near $115 a barrel added to concerns about India's import costs.
- Attention turns to the Federal Reserve's October 28 policy decision.
Table of Contents
- Indian rupee loses support as importers buy dollars
- Oil costs and foreign selling add pressure
- Fed decision is the next scheduled policy event
- Conclusion
Indian rupee loses support as importers buy dollars
The rupee opened little changed before weakening through the session. Traders said the absence of support from Reserve Bank of India dollar sales and Jio Platforms IPO-linked inflows left the currency more exposed to importers' dollar demand.
Those factors had helped support the rupee in recent sessions. The account of Monday's trading reflects traders' assessments, rather than an RBI confirmation of its intervention activity.
The exchange rate is quoted in rupees per US dollar, so a higher reading means a weaker rupee and a greater local-currency cost for the same dollar payment.
| Item | Details |
|---|---|
| Brent's three-week change | Up around 13% through the week before October 26 |
| October foreign equity flows | Net sales of nearly $5 billion through October 26 |
| September foreign equity flows | Net sales of $3.75 billion |
Oil costs and foreign selling add pressure
Brent crude traded around $115 a barrel during Asian hours on Monday after rising for three consecutive weeks. Supply-disruption concerns following Houthi attacks on Saudi Arabia accompanied the increase.
Higher oil prices could widen India's import bill and intensify inflation pressures. They could also encourage companies to increase currency hedges, adding another potential source of dollar demand.
Foreign investors remained net sellers of Indian equities, with October withdrawals already exceeding September's total. These figures track equity flows, not all foreign investment into India.
Vaibhav Shah, head of products, business strategy and international business at Mirae Asset Mutual Fund, warned that a prolonged geopolitical conflict would put pressure on oil prices, the currency and the broader earnings recovery.
Fed decision is the next scheduled policy event
The Federal Reserve's October meeting calendar lists the policy meeting for October 27–28, placing the decision on Wednesday, October 28.
A rate pause was widely expected ahead of the meeting, with attention focused on the future interest-rate path. That expectation is not an announced policy outcome; the official calendar establishes the meeting dates, not the decision.
Conclusion
The Indian rupee ended Monday under pressure from dollar demand, expensive oil and equity outflows. The next confirmed policy event is the Federal Reserve's October 28 decision, when the expected pause and guidance on rates will be tested.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
