Indian Rupee Hits One-Week Low Amid US Dollar Strength

The Indian rupee weakened to a one-week low, closing at 94.20 against the US dollar on Friday, November 13, 2026. The currency breached the 94 level for the first time since March 2026, driven by a strengthening US dollar index, rising US Treasury yields, and aggressive dollar demand from a state-owned bank.

Volatility persisted throughout the week. After closing at 94.04 on Thursday, the rupee saw a marginal early gain on Friday before falling again. The decline was exacerbated by higher-than-expected US inflation data and signals from the Federal Reserve System that interest rates may remain elevated. Geopolitical tensions involving the United States, Iran, and the Gulf region further dampened market sentiment.

Domestically, India faces economic pressure as retail inflation rose to 6.09% in October, exceeding the Reserve Bank of India's upper tolerance limit for the first time in two years. This surge has led to market expectations for 25-basis-point policy rate hikes in December 2026 and February 2027. While the Sensex and Nifty tumbled, foreign institutional investors continued to provide support, purchasing equities worth ₹7,830.60 crore on Thursday. Analysts suggest that lower Brent crude oil prices and India's role as an AI hedge for global investors may eventually support a recovery.