Rupee slips to 95.22 per dollar as oil prices stay high

Rupee slipped 7 paise to 95.22 per U.S. dollar in early trade on Tuesday, October 27, 2026. The drop came despite a brief recovery that traders linked to a possible RBI intervention. At the interbank market the currency opened at 95.17, narrowed to 95.11, then rose to 95.22, ending lower than the previous close. Pressure from foreign fund outflows and weak domestic equity sentiment outweighed the short‑term support. The move was driven by several external factors. Crude oil prices stayed near a six‑month high of $114.76 a barrel, even as Brent fell 0.91 % in the session. Analysts said Houthi attacks on Saudi oil facilities heightened fears of supply disruptions, keeping oil prices elevated. A stronger greenback ahead of the U.S. Federal Reserve’s policy decision also added to the rupee’s weakness, with the dollar index up 0.06 % to 101.86. Domestically, equity markets showed little vigor. The Sensex slipped 126.16 points (0.17 %) to 73,480.59 and the Nifty dropped 47.30 points (0.21 %) to 22,706.30. Foreign Institutional Investors sold equities worth ₹1,462.49 crore on a net basis on Monday, adding to the outflow pressure.

Context

The rupee’s three‑day slide, a total loss of 77 paise, follows a pattern of volatility that often accompanies global oil shocks and shifts in U.S. monetary policy expectations. Market participants watch RBI actions and fund flows closely as they can tip the balance in such tight conditions.