Rupee drops 12 paise against U.S. dollar in early trade

The Indian rupee fell 12 paise to 94.50 against the U.S. dollar in early trade on Thursday, October 22, 2026. Weak local stock markets and high crude oil prices pulled the currency down. At the interbank foreign exchange market, the rupee opened at 94.47 before dropping further. This drop follows a gain of 53 paise on Wednesday, when the rupee closed at 94.38 against the dollar.

Market Factors

Experts note that a softer U.S. dollar and falling U.S. Treasury yields helped stop the rupee from falling further. Brent crude oil traded 1.58 percent higher at $110.54 per barrel. Meanwhile, the dollar index fell 0.21 percent to 101.56. On the domestic stock front, the Sensex dropped 642.51 points to reach 73,067.18 in early trade, while the Nifty fell 241.35 points to 22,570.90.

Expert Views

Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, said the rupee may still trade with a slight positive bias due to foreign money coming in for initial public offerings and a weak dollar. He added that traders are watching U.S. weekly jobless claims data. Anindya Banerjee, head of commodity and currency research at Kotak NEO, stated that the rupee stays finely balanced between 94 and 97. Banerjee noted that Reserve Bank of India actions, the Jio initial public offering, and potential U.S. trade deals support the rupee, though heavy stock selling or rising oil could test this balance.

Context

Exchange data shows that Foreign Institutional Investors bought equities worth Rs 1,022.32 crore on a net basis on Wednesday. Currency values change constantly based on global oil prices, foreign investments, and the relative strength of the U.S. dollar.