The rupee exchange rate weakened 0.18% to 95.1150 per US dollar by 11:10 a.m. IST on October 26, 2026, after opening largely unchanged. Importer dollar purchases and a modest buildup in interbank long-dollar positions accompanied the morning decline.

Key Takeaways

  • Brent crude remained near $115 a barrel in Asian trading after rising more than 6% the previous week.
  • India’s foreign exchange reserves fell for a sixth consecutive week through October 16, reaching $721 billion.

Rupee exchange rate faces dollar demand

The currency weakened through the morning amid dollar purchases by importers and a buildup in interbank positions favoring the US currency. The move also came as oil prices remained high.

The Reserve Bank of India’s dollar sales had supported the rupee in recent sessions, but that support was absent on October 26. In earlier weeks, intervention and inflows linked to the Jio Platforms IPO had helped the currency recover from levels near 96.70 per dollar.

Oil prices and reserves in focus

Brent crude rose more than 6% in the previous week to a six-month high amid concerns about supply disruptions following attacks on Saudi Arabia. Higher oil prices increase India’s import bill and can add to inflationary pressure.

India’s foreign exchange reserves declined by $5 billion in the week through October 16 and were more than $64 billion below their all-time high in the first week of September. Bankers attributed part of the decline to RBI spot dollar sales supporting the rupee and sell/buy swaps used to manage rupee liquidity.

Next milestone

The Federal Reserve’s policy decision later that week was the next event in focus, with a rate pause widely expected and attention on guidance for the rate outlook.

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