The Indian rupee ended the previous trading week under pressure, closing at approximately ₹95.87–95.8750 per US dollar on Friday, September 18, 2026. The currency logged a modest weekly decline amid elevated crude oil prices, global interest rate movements, and mixed capital flows, while the Reserve Bank of India (RBI) continued to intervene to limit sharper depreciation.
Weekly Performance Snapshot
The rupee closed the week around ₹95.87–95.8750 against the US dollar.
It had come under pressure earlier in the week, briefly testing levels near or above 96 before recovering with support from reported RBI dollar sales.
Positive domestic equity momentum and a mild retreat in oil prices on Friday helped the currency snap a multi-session losing streak in the final session.
Key Factors Weighing on the Rupee
1. Elevated Crude Oil Prices
Brent crude remained elevated (trading near or above $100–$104 per barrel during the week) due to ongoing Middle East tensions and supply concerns. Higher oil prices increase India’s import bill, raise dollar demand from oil companies, and put pressure on the current account and the rupee.
2. Global Interest Rate Environment
The US Federal Reserve’s recent rate hike and expectations of higher global borrowing costs supported the dollar and weighed on emerging market currencies, including the rupee. Rising US bond yields added to the headwinds.
3. Foreign Portfolio Investment (FPI) Flows
Sustained foreign fund outflows from Indian equities increased dollar demand and contributed to rupee weakness during the week.
4. RBI Actions
Market participants reported active dollar sales by state-run banks on behalf of the RBI, particularly when the rupee approached the 96 level. Traders described 96 as a “line in the sand” that the central bank is defending. RBI measures to manage liquidity and support capital inflows also provided a buffer.