Rupee slumps 37 paise to close at 96.31 against U.S. dollar
The Indian rupee fell to 96.31 against the U.S. dollar, marking a two-month low due to global market risk aversion and rising treasury yields. Foreign institutional investors have significantly offloaded Indian equities, contributing to the currency's decline.
Why it matters
The depreciation of the rupee reflects broader economic instability and investor anxiety, which can impact inflation and domestic market performance.
The rupee slumped below the psychologically important 96 per dollar mark on Thursday (October 1, 2026) to close at 96.31 (provisional) against the U.S. dollar, the lowest level in more than two months, on risk aversion in global markets amid surging global bond yields and selling pressure from foreign investors.
Forex traders said the rupee is expected to trade with a negative bias amid risk aversion in global markets and worries over rising global treasury yields.
At the interbank foreign exchange market, the rupee opened at 95.95, then lost ground to touch an intraday low of 96.34 against the American currency. At the end of Thursday's trading session, the domestic unit was quoted at 96.31 (provisional) against the greenback, lower by 37 paise over its previous close.
On Wednesday, the rupee pared gains to settle flat at 95.94 against the U.S. dollar.
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