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The rupee depreciated 38 paise to close at 95.92 (provisional) against the U.S. dollar on Tuesday (September 15, 2026), weighed down by escalating West Asia conflict and soaring Brent crude oil prices, which hit $108 per barrel.
Forex traders said surging dollar demand from oil importers has sparked fresh concerns over inflation and India’s external trade balance.
Moreover, weak domestic markets, a strong US dollar and worries over rising global treasury yields further dented investor sentiment.
At the interbank foreign exchange market, the rupee opened at 95.84 against the U.S. dollar, then lost ground and closed at 95.92 (provisional) against the American currency, down 38 paise from its previous close.
On Friday (September 11, 2026), the rupee had settled at 95.54 against the American currency.
Forex and equity markets were closed on Monday (September 14, 2026) on account of Ganesh Chaturthi.
“We expect the rupee to trade with a negative bias on risk-off sentiments in global markets and worries over rising global treasury yields. Rising global crude oil prices amid fears over supply disruption and a strong dollar may also pressurise the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.
However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from ADP weekly employment and Empire State manufacturing index data from the U.S.
“Investors may remain cautious ahead of the Federal Open Market Committee (FOMC) meeting decision on Wednesday. USD-INR spot price is expected to trade in a range of 95.75 to 96.15,” Mr. Choudhary said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.61, higher by 0.22%.
Brent crude, the global oil benchmark, was trading higher by 1.92% at $107.71 per barrel in futures trade, amid escalating U.S.-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.
With Brent crude touching $108 per barrel, increased dollar demand from oil importers raised concerns over India’s external balance and inflation, forex traders said.
On the domestic equities market front, Sensex tanked 777.94 points to settle at 74,003.82, while the Nifty dropped 279.50 points to 23,118.60.
Foreign institutional investors (FIIs) offloaded equities worth ₹930.90 crore on a net basis on Friday (September 11, 2026), according to exchange data.
Meanwhile, India’s forex reserves jumped by a record $44.903 billion to a new lifetime high of $785.706 billion during the week ended September 4, the RBI said on Friday (September 11, 2026).
In the previous reporting week, the overall reserves increased by $11.475 billion to $740.803 billion.
Published – September 15, 2026 05:02 pm IST
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