The rupee opened Monday at 95.89, weakened to 95.95 against the dollar by mid‑session, while Brent crude futures climbed 2.31 % to $106.81 per barrel and the dollar index ticked up to 101.11. The sharp rise in oil, driven by a Middle East standoff and President Trump’s rejection of an Iran peace proposal, tightened the rupee’s supply‑demand balance.
Foreign institutional investors continued to pull capital, selling shares worth Rs 3,693.93 crore net on Friday. RBI data showed the country’s foreign‑exchange reserves fell $14.881 billion to $765.901 billion in the week ended 18 September, a decline largely attributed to lower foreign‑currency assets.
The Sensex dropped 900 points, or 1.17%, while the NSE Nifty fell 231.50 points to 22,908.95, reflecting broader market anxiety. Finrex Treasury Advisors’ chief, Anil Kumar Bhansali, warned that Brent remains above $100, posing a continuous threat to India’s import bill and reserves.
RBI has signalled it will maintain the 96.00‑range target, keeping the policy rate unchanged for the foreseeable future. Market participants expect the central bank to announce any shift in stance only after a comprehensive review of the outflow trajectory.
For small investors, the rupee’s slide translates into a tangible loss: a Delhi‑based trader who had a 5 % stake in a domestic ETF saw her holdings shrink by ₹10,000 in a single day as the currency weakened.