Rupee Slips 3 Paise To 95.97 Against US Dollar, RBI Dollar Sales Help Defend The 96 Level

Mumbai: The Indian rupee weakened by 3 paise to 95.97 against the US dollar in early trading on Thursday, October 1, as dollar demand from state-run oil companies kept the currency under pressure.

At the interbank foreign exchange market, the rupee opened at 95.95 before slipping to 95.97. It had settled unchanged at 95.94 on Wednesday after surrendering earlier gains.

The currency traded within a narrow range, with sustained foreign portfolio outflows and firm US bond yields adding to the pressure.

RBI Intervention Limits Rupee Losses

Dollar sales backed by the Reserve Bank of India helped contain the decline and kept the exchange rate below the closely watched 96.00 level.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said the RBI supplied dollars through state-run banks in both spot and forward markets.

He described this intervention as the main factor preventing the spot exchange rate from moving beyond 96.00.

Dollar Index Near Two-Month High

The dollar index, which measures the US currency against six major currencies, rose 0.09 per cent to 101.54.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said the index was near a two-month high around 101.5.

It gained almost 2 per cent in September and was approaching its 52-week high near 101.8, he added.

Banerjee said a stronger dollar creates headwinds for gold, silver and emerging market currencies, including the Indian rupee.

Crude Oil Falls, Indian Stocks Weaken

Brent crude futures declined 1.18 per cent to $96.87 a barrel, while domestic equity benchmarks also traded lower.

The Sensex fell 215 points to 72,257.30 in early trading. The Nifty declined 107.25 points to 22,518.90.

Foreign institutional investors sold equities worth ₹10,148.41 crore on a net basis on Wednesday, according to exchange data.

The rupee’s early movement reflected continued dollar demand and overseas selling, with RBI intervention helping restrict further losses around the 96.00 threshold.