Rupee settles 3 paise lower at 95.94 against U.S. dollar after breaching 96 level
The Indian rupee experienced high volatility, briefly breaching the 96 level against the U.S. dollar before settling at 95.94. The currency faced pressure from foreign fund outflows, U.S. Federal Reserve interest rate hikes, and potential new tariffs on Russian oil imports.
Why it matters
Currency fluctuations and trade tensions impact India's import costs and overall economic stability in a volatile global market.
The rupee, which slipped below the 96 level in intraday trade, ended Thursday's (September 17, 2026) session with a loss of just 3 paise at 95.94 (provisional) against the U.S. dollar, paring initial losses on likely RBI intervention.
The rupee ended almost flat amid a slight fall in the dollar index and crude oil prices, which supported investor sentiment despite global geopolitical volatility.
According to forex analysts, the local currency, however, stayed under pressure due to outflows of foreign funds and global trade uncertainties after the House of Representatives cleared a law authorising President Donald Trump to impose up to a 100% tariff on India and other countries importing Russian oil.
The domestic unit was also weighed down after the U.S. Federal Reserve hiked interest rates for the first time in three years amid rising inflation, they said.
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