Rupee rises 11 paise to 95.17 against US dollar

Following the US Federal Reserve's decision to keep interest rates unchanged, which weakened the dollar, the Indian rupee rose by 11 paise to 95.17 against the US dollar in early trade on Thursday.

As traders reacted negatively to the dollar, it weakened, strengthening the rupee. Market observers are now focusing on upcoming economic data, especially inflation and potential interest rate changes. Notably, Foreign Institutional Investors (FIIs) are actively buying into Indian equities, reflecting a positive market approach.

Earlier on Wednesday, October 28, 2026, the rupee remained in a limited range due to high crude oil prices and a strong dollar, rising by just 4 paise to 95.03 in early trade. On Wednesday, the rupee showed a slight increase against its previous close of 95.07. According to Mirae Asset Sharekhan's Research Analyst Anuj Choudhary, the rupee was expected to trade with a slightly negative bias due to a positive dollar and weaker Asian currencies. He further stated that high crude oil prices could keep the rupee under pressure. Investors were keeping an eye on the Federal Open Market Committee's decision. According to Choudhary, the Fed was expected to keep interest rates unchanged, but markets were watching Fed Chair Kevin Warsh's press conference. He projected the USD-INR spot price to remain in the range of 94.85 to 95.40.

On Tuesday, October 27, 2026, the rupee was trading 7 paise lower at 95.22. At that time, the rupee was under pressure due to high crude oil prices, geopolitical uncertainty, and a strong dollar ahead of the US Federal Reserve's policy decision. According to forex traders, a slight recovery was seen in the rupee due to the Reserve Bank of India's (RBI) potential intervention, but it could not withstand the pressure due to weak sentiment in the domestic equity market and outflows of foreign funds. On Tuesday, the rupee opened at 95.17 in the interbank forex market and reached 95.11, but later declined to 95.22. On Monday, the rupee fell for the third consecutive day, closing 22 paise lower at 95.15. In the last three sessions, the rupee has lost 77 paise against the dollar.

The dollar index, which measures the strength of the dollar against a basket of six currencies, was up 0.06% at 102.37 on Wednesday, while it was at 101.86 on Tuesday. Brent crude futures were up 1.37% at $115.44 a barrel in trade on Wednesday, while on Tuesday it was down 0.91% at $114.76 a barrel. On Tuesday, the Sensex fell 126.16 points or 0.17% to 73,480.59 and the Nifty fell 47.30 points or 0.21% to 22,706.30. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth ₹1,462.49 crore on Monday, while they made a net purchase of ₹4,240.39 crore on Tuesday.