The Indian rupee traded at 95.83 against the U.S. dollar on Thursday, a 9‑paise slide from the 95.74 close on Wednesday, as traders weighed the twin forces of a stronger dollar and hotter oil prices.
Brent crude pushed back above the $100‑per‑barrel threshold, sparking concerns that India’s heavy reliance on imported oil will lift its dollar‑denominated import bill and exert further pressure on the rupee.
U.S. Treasury yields surged, with the 10‑year benchmark climbing more than 15 basis points from Tuesday, while the 5‑year yield breached the 5% mark for the first time since 2007, making U.S. assets comparatively more attractive and bolstering the dollar.
RBI Deputy Governor Poonam Gupta cautioned that the rupee’s weakness since March 2025 is a temporary phenomenon, hinting at potential appreciation if the central bank’s intervention continues to temper volatility.
Foreign institutional investors have sold roughly $3.5 billion of Indian equities and bonds in September, though they were net buyers of ₹1,617.45 crore worth of stocks on Wednesday, indicating a split‑signal from overseas capital.
Going forward, market participants will monitor the trajectory of Brent, the dollar index, U.S. interest‑rate expectations, and the RBI’s policy stance—each of which could shift the rupee’s course and, by extension, the cost of imports for Indian exporters and consumers alike.