The rupee exchange rate slipped to 95.22 per US dollar at 10:25 a.m. IST on October 27, 2026, from 95.1850 on Monday, as traders assessed how much further depreciation the Reserve Bank of India might tolerate.

Rupee exchange rate faces external pressure

Traders said high oil prices and foreign equity outflows were leaving the currency reliant on central bank intervention for support. Crude prices near a six-month peak have encouraged importers to increase hedging and added to concerns about India’s economic outlook.

Foreign investors withdrew nearly $5 billion from Indian equities in October. The rupee had weakened past 95 per dollar on Monday before slipping further on Tuesday.

Traders reassess RBI intervention

The RBI has spent around $80 billion to support the currency since June. Its intervention and measures to discourage dollar buying helped the rupee recover from levels near 97 per dollar earlier in October.

A currency trader at a private-sector bank said the odds were shifting in favor of the RBI allowing a controlled decline, given oil prices and continuing pressure on the rupee. That assessment is a trader’s view, not an announced change in central bank policy.

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