The Indian rupee declined for
the third consecutive trading session on Monday as importers
stepped up dollar purchases, while elevated oil prices and
foreign outflows also weighed on the local currency.
The rupee opened little changed against the US dollar, but
slipped to end at 95.1850, down 0.3 per cent for the day. It has fallen
about 0.8 per cent in three sessions.
Benchmark Brent crude jumped for a third straight week last
week, and it has risen around 13 per cent in that time on mounting
concerns over supply disruptions following attacks by Houthis on
Saudi Arabia.
The contract traded at around $115 a barrel in Asian hours
on Monday.
Higher oil prices could widen India’s import bill, stoke
inflationary pressures and weigh on sentiment towards the rupee.
They could also push companies to increase currency hedges and
make foreign investors more cautious about Indian assets.
“If the geopolitical conflict continues, there will be
pressure on oil prices, currency and broader earnings recovery,”
said Vaibhav Shah, head of products, business strategy and
international business at Mirae Asset Mutual Fund.
“Global capital has moved toward markets with direct
exposure to the chip and artificial intelligence boom,” he
added.
Foreign investors have net sold Indian equities worth
nearly$5 billion so far in October, following net sales of $3.75
billion in September, depository data showed.
The rupee had found support in recent sessions from RBI
dollar sales and inflows linked to the Jio Platforms IPO, but
the absence of such support on Monday left it more exposed to
importers’ dollar demand, traders said.
All eyes are now on the US Federal Reserve’s monetary policy
decision on Wednesday, with a widely expected rate pause on the
cards and the focus on the interest rate trajectory.
Published on October 26, 2026
