Indian Rupee Hits Two-Month Low Past 96 Per Dollar

The Indian rupee fell to a two-month low on Thursday, breaching the psychological 96-per-dollar barrier. Reports on the exact closing rate varied between 95.83 and 96.3150, marking the steepest single-day decline in over eight weeks.

Several global economic factors drove the slump. US Treasury yields climbed to a two-decade high of approximately 5.3%, while Brent crude oil prices returned to the $100-per-barrel mark. These pressures were compounded by significant foreign portfolio outflows, with National Securities Depository Limited data showing $991 million left local markets on Thursday alone. This contributed to a total of $23 billion withdrawn by foreign institutional investors throughout 2026.

The Reserve Bank of India intervened by selling dollars to cap the currency's losses, though the rupee remained under pressure alongside other Asian currencies. The Government of India warned that volatile energy prices and supply disruptions pose near-term risks to capital flows and inflation.