Rupee Gains 11 Paise Against U.S. Dollar Following Federal Reserve Rate Decision

The Indian rupee gained 11 paise to reach 95.17 against the U.S. dollar in early trade on Thursday, October 29, 2026. The local currency opened at 95.20 at the interbank foreign exchange market before strengthening slightly, following the previous close of 95.28 on Wednesday. This movement occurred as the U.S. Federal Reserve kept interest rates unchanged between 3.75% and 4.00%, meeting market expectations. Forex traders noted that the post-announcement market reaction turned mildly dollar-negative, while the dollar index traded lower by 0.04% at 102.15. Several factors continue to influence the rupee's trajectory. High crude oil prices and firm U.S. yields pose challenges, with Brent crude trading down 1.03% at $114.13 per barrel. At the same time, foreign exchange reserves sitting around $721 billion, better portfolio flows, and the Reserve Bank of India intervening in the market provide essential support. Anindya Banerjee, who serves as the head of commodity and currency research at Kotak NEO, stated that a gradual upward bias is expected within the current currency range rather than any disorderly movement. Meanwhile, domestic equities showed positive momentum as the Sensex rose 163.03 points to 73,409.06 and the Nifty gained 40.40 points to 22,739.25, supported by Foreign Institutional Investors buying equities worth ₹871.83 crore on a net basis on Wednesday.

Context

Currency exchange rates are constantly influenced by a balance of global economic policies, central bank decisions, and commodity prices like crude oil. When the U.S. Federal Reserve holds interest rates steady, it often creates shifts in global capital flows that directly impact emerging market currencies like the Indian rupee.