Indian Rupee Gains Against Dollar Amid RBI Interventions
The Indian rupee appreciated for six consecutive sessions, reaching 94.79 against the US dollar driven by Reserve Bank of India structural interventions and a weaker dollar index.
The Reserve Bank of India drove a six-session appreciation of the Indian rupee, which reached 94.79 against the US dollar in early trade on October 16, 2026. The central bank implemented structural interventions to curb speculative bets, including requiring banks to maintain a 20 per cent reserve for dollar purchases exceeding $2 million and prohibiting the rebooking of cancelled INR derivative contracts.
On October 15, the rupee initially strengthened to 94.85 before closing at 95.05. This movement was supported by a decline in the US dollar index and a nearly 2 per cent drop in Brent crude oil prices to $104.30 per barrel. By October 16, the currency gained another 20 paise, aided by softening US Treasury yields and a further decline in the dollar index.
While the rupee showed resilience, its momentum faced headwinds from a widening trade deficit and robust importer demand for dollars. Domestic equity markets showed volatility during this period; the Sensex jumped over 1,500 points on October 15 but fell 113 points by October 16. Additionally, Foreign Institutional Investors offloaded equities worth ₹5,285.37 crore on a net basis on Thursday.
