Indian rupee slips to 96.30 against dollar amid oil pressure

The Indian rupee dropped 5 paise to close provisionally at 96.30 against the U.S. dollar on Monday, October 5, 2026. High oil prices and continuous foreign fund outflows pushed the domestic currency down near the critical 96 level. At the interbank foreign exchange market, the rupee opened at 96.20 and touched a low of 96.31 during the session. On Thursday, October 1, the currency had closed at 96.25 after falling past the 96 mark. Markets remained closed on Friday, October 2, for Mahatma Gandhi Jayanti.

Market Activity

Better risk sentiment helped support the local currency during the day. Meanwhile, the dollar index traded 0.25 percent higher at 102.18, and Brent crude oil traded up 0.22 percent at 102.48 dollars per barrel. On the stock market front, the Sensex rose 472.77 points to 72,382.47, and the Nifty climbed 133.80 points to 22,555.75. Foreign Institutional Investors sold equities worth 9,484.22 crore rupees on a net basis on Thursday. India's foreign exchange reserves fell by 18.343 billion dollars to total 747.557 billion dollars in the week ending September 25.

Context

Currency values fluctuate daily based on global commodity prices, foreign investments, and central bank policies. When oil prices rise, countries that import large amounts of petroleum must spend more dollars, which often puts pressure on their local currencies.