Forex News — Currency Markets
Track rupee movements, RBI forex interventions, and global currency trends that affect Indian investors. This section covers the USD/INR pair, cross-currency dynamics, central bank policy shifts, and trade flow data that drive exchange rates. Currency moves have a direct impact on IT sector earnings, import-heavy industries, and international fund returns. Whether you are hedging forex exposure or simply want to understand why the rupee is moving, the updates here keep you informed.
Euro Nears 17-Month Low As Dollar Strengthens Ahead Of US Fed Minutes
The euro slid towards a 17-month low as French fiscal worries weighed on sentiment, while the dollar strengthened ahead of the US Fed's September meeting minutes.
RBI says it will ensure 'undervalued' Rupee finds its correct level
The Reserve Bank of India has stated its intent to stabilize the undervalued rupee, which reached a five-month low. Despite raising the policy rate for the first time since February 2023, the rupee has fallen due to foreign capital outflows. According to economists, the stronger dollar index contributes to the rupee's pressure in the market. Interventions by the central bank included dollar-rupee swaps to manage liquidity effectively.
Sharper, bigger RBI moves coming in December? SBI economists put things in perspective
The recommendations come as the central bank manages inflation risks alongside pressure on the rupee and capital flows. A 50-basis-point increase in December would mark a sharper pace of tightening than Wednesday's hike, if inflation and global conditions take the expected path.
Iraq devalues its currency as Mideast war disrupts oil shipping routes
Iraq has officially devalued its currency from 1,300 dinars to 1,500 dinars to the US dollar. The Central Bank announced this decision following a Cabinet meeting, which aimed to address financial, economic, and monetary needs. There has been a noticeable gap between the official and market rates, which widened due to regional conflicts. The market rate increased significantly after the announcement, reflecting ongoing economic challenges.
RBI moves to quell forex reporting confusion, says individuals need not report imports, export earnings
The RBI on Wednesday clarified that individuals are not required to report imports or export earnings under the new foreign exchange regulations, and said FAQs will be issued shortly to address confusion. Governor Sanjay Malhotra said reporting on the RBI platform is handled by banks and authorised dealers, not traders.
FCNR-B deposits: Economic benefits outweigh hedging costs, says Sanjay Malhotra
The RBI had introduced the special USD-INR forex swap facility on June 8, 2026, as part of efforts to strengthen foreign exchange reserves and support balance of payments conditions. The facility allowed banks to offer higher interest rates on FCNR(B) deposits by transferring the currency hedging cost to the central bank.
Looking West For Alpha? Three Reasons Why Indian Investors May Eye US Stocks Post-RBI Rate Hike
For investors, a primary driver behind potential shift towards Wall Street is the historical disconnect between domestic rate hikes and currency resilience.
Reserves drop as FCNR inflows dry, RBI dollar sales continue
Reserves have fallen to $734.6 billion in the week ended October 2, the fourth consecutive week of fall and down from a recent peak of $785.71 billion reported on September 4, according to a footnote to governor Sanjay Malhotra's monetary policy statement on Wednesday. The latest reserve numbers were released earlier than the scheduled date of October 9.
Rupee Breaches Key Support On RBI's Hawkish Pivot As INR Hits Five-Month Low: More Pressure Ahead?
The rupee fell 43 paise to 96.78 against the dollar after the RBI's hawkish pivot, with higher crude prices and risk aversion adding to pressure on the currency.
Top 2 stocks to buy for short-term: Bank of Maharashtra, Usha Martin by Nagaraj Shetti - Check stop loss, targets
Indian stock markets ended a two-day streak as RBI raised the repo rate by 25 basis points to 5.5%, causing the Nifty 50 to drop 0.76% and the Sensex to decline 0.59%. The rupee hit a five-month low, while bond yields rose post-announcement.
Saurabh Mukherjea’s Marcellus ties up with VanEck to widen global investment offerings for Indian investors
Marcellus Investment Managers has partnered with VanEck to expand its global investment offering for Indian investors through a multi-asset strategy. The portfolio will span global equity and bond ETFs, commodities and real assets, giving high-net-worth investors access to diversified global exposure and dollar diversification through Marcellus GIFT City.
Rupee nears record low despite RBI hike, governor says markets can be irrational
The Indian rupee has dipped to its lowest point in five months, following a recent interest rate hike by the Reserve Bank of India. Analysts remark that the monetary policy appears too lenient to stabilize the currency. Investors are wary as ongoing portfolio outflows and rising global bond yields continue to exert pressure.
Markets can be irrational in the short run: What RBI Governor Sanjay Malhotra said as rupee nears lifetime low
The rupee neared its record low after the RBI raised the repo rate to 5.50%. Governor Sanjay Malhotra said the currency may be undervalued, while analysts viewed the hawkish stance and higher inflation outlook as supportive of the rupee.
Three Reasons Why Market Is Falling: Sensex Slumps Nearly 600 Points, Nifty Below 22,600
A hawkish RBI, $100-crude and rupee plunge were among the factors that led to the Indian market snapping its two-day relief rally.
Rupee undervalued, RBI governor says, even as he promises stability against dollar
The RBI will ensure that the rupee stabilises, that the rupee finds its correct value, while ensuring that there is no excessive volatility, Governor Sanjay Malhotra says.
India's FX reserves fall for fourth week, down $50 billion from September peak
India's foreign exchange reserves have fallen for the fourth consecutive week to $734.6 billion. This decline follows a recent peak of $785.71 billion on September 4. The Reserve Bank of India has intervened in the market to support the rupee's value amid rising pressures. Elevated oil prices, increasing US Treasury yields, and foreign equity outflows are contributing to the rupee's depreciation. On Wednesday, the rupee declined nearly 0.
Stock Market Today LIVE: Sensex Cracks Over 500 Points, Nifty 50 Below 22,600; Rupee Near Record Low
Barring Nifty Media and Nifty PSU Bank, all other sectoral indices were trading in the red, with Nifty Auto, Nifty Metals, Nifty FMCG, Nifty IT and Nifty Oil & Gas falling the most.
Indian rupee FX premiums jump after RBI policy leaves traders bracing for more sell/buy swaps
On Wednesday, after the Reserve Bank of India's policy meeting, dollar-rupee forward premiums soared, marking the highest implied 1-year dollar/rupee forward premium seen in six months. With traders expecting more foreign exchange swaps as part of the RBI's liquidity management strategy, the spot USD/INR increased by 0.28%, edging closer to its historical peak. These shifts reveal the profound impact of the RBI's actions on the market.
Between $100 Crude And 7.2% GDP: How Market Voices Read RBI's Rate Hike
Experts believe India's resilient growth story faces a triple threat from surging oil, sticky food inflation, and a stronger dollar.
RBI MPC speech: FDI, forex reserves, credit growth — what Governor Sanjay Malhotra said on global financials
Governor Sanjay Malhotra highlighted stronger FDI inflows, $734.6 billion forex reserves and 18.1% bank credit growth, while noting $10.3 billion FPI outflows amid global financial risks.
RBI rate hike to raise home, car loan borrowing costs
The Reserve Bank of India increased its policy rate by 25 basis points to 5.50% on Wednesday. Borrowers might face higher monthly installments or extended repayment periods based on loan agreements. The monetary policy committee unanimously adopted a stance of 'calibrated tightening' with future increases possible. External benchmark-linked loans make up 68.2% of outstanding floating-rate rupee loans as of June.
RBI Repo Rate 2026: Malhotra & Co hike repo rate by 25 bps to 5.50% for first time in nearly 4 years as inflation pressures build
Repo Rate Hike: The RBI raised the repo rate by 25 basis points to 5.50%, its first hike in nearly four years, as rising oil prices, a weak monsoon and a weaker rupee threaten to push inflation higher. The move was widely expected by economists.
RBI MPC Meeting 2026: Malhotra & Co hike repo rate by 25 bps to 5.50% for first time in nearly 4 years as inflation pressures build
RBI Monetary Policy Meeting 2026: The RBI raised the repo rate by 25 basis points to 5.50%, its first hike in nearly four years, as rising oil prices, a weak monsoon and a weaker rupee threaten to push inflation higher. The move was widely expected by economists.
Rupee falls 10 paise to 96.45 against US dollar ahead of RBI monetary policy decision
In early Wednesday trading, the rupee depreciated by 10 paise, settling at 96.45 against the US dollar. Investors are keenly awaiting the Reserve Bank of India's upcoming monetary policy decisions regarding interest rates and liquidity, with many analysts predicting a rate hike due to escalating inflation concerns stemming from the ongoing conflict in West Asia.
Rupee falls 22 paise to 96.57 against US dollar post RBI rate increase
The Indian rupee experienced a drop following the Reserve Bank of India's decision to raise interest rates by 25 basis points. This move is intended to manage the surging inflation linked to ongoing geopolitical issues in West Asia. Market analysts interpret the RBI's shift to a more aggressive stance towards inflation as indicative of its commitment to economic stability.
Dollar holds losses as markets await Fed minutes, speakers
The US dollar faced a downturn while European bond markets began to stabilize, affecting overall currency landscapes. Traders are eyeing the forthcoming Federal Reserve minutes and speeches from key figures, swaying market feelings. The euro gained ground, buoyed by decreasing French bond yields related to political expenditures, while the Japanese yen lagged, despite positive discourse on interest hikes. Overall, market forecasts for Fed rate adjustments signal a cautious outlook ahead.
Rupee loses 13 paise to close at 96.42 per US dollar
The rupee weakened 13 paise to close at 96.42 against the dollar, its weakest level in over two months, pressured by persistent foreign investor outflows and oil companies’ dollar demand. RBI intervention limited losses, while markets awaited the central bank’s policy commentary.
Mideast Oil Chiefs Warn World Needs To Share Iran War Costs
The conflict has led to widespread damage to oil pipelines, refineries, gas plants and dozens of tankers, racking up a bill for new investment that is already in the tens of billions of dollars.
Rupee hits two-month low on outflows, investors await RBI outcome with hike priced in
The Indian rupee fell to its lowest point in over two months due to equity outflows. Traders are focusing on the Reserve Bank of India’s upcoming monetary policy decision. Analysts expect a 25 basis point hike, which could strengthen the rupee. Dollar sales from state-run banks have limited the currency's decline amidst persistent short positions. Future comments from policymakers will be closely monitored for indications on benchmark rates.
India is cheaper. Why are foreign investors still selling?
FPIs invested ₹55,524 crore through the primary market despite heavy secondary-market selling. Lower valuations have yet to offset concerns over earnings and dollar returns.
Global Market: Euro under pressure as France debt worries, Spain vote weigh
The euro hovered near a 17-month low at $1.1219 amid euro zone political uncertainty, high debt and French fiscal concerns. Meanwhile, the dollar strengthened as US Treasury yields climbed, with persistent inflation limiting expectations for monetary easing. Markets also monitored potential Bank of Japan tightening as the yen remained weak against the dollar.
Rupee slips to over 2-month low on portfolio outflows, RBI likely steps in
The Indian rupee faced a setback on Tuesday, falling to its weakest position in more than two months. Continuous foreign divestment in local assets heightened pressure on the currency, igniting discussions of possible intervention from the central bank. Analysts foresee a cautious depreciation of the rupee throughout the upcoming year, bolstered by positive capital inflows into foreign reserves.
SP Group unit raises $460 million in rupee debt to repay loans
Eqyizen Investment, a subsidiary of the Shapoorji Pallonji Group, has successfully secured 44.5 billion rupees through the issuance of zero-coupon rupee bonds. These bonds will mature in July 2029, offering an attractive yield of 18.95%. The funds will assist in fulfilling a financial obligation linked to Porteast Investment, which faces a debt payment in May 2025.
Euro faces political, fiscal reckoning as it hovers near 17-month low
The euro has hit a 17-month low, primarily due to a mix of political instability and fiscal challenges within the euro zone. Heightened worries about soaring debt levels and political standstill in France are exacerbating the euro's decline. Meanwhile, the dollar is gaining strength, bolstered by US Treasury yields that have surged to their highest levels in decades.
Banks cut CD borrowings by Rs 1.3 lakh crore in a month amid RBI liquidity boost
Indian banks significantly decreased the issuance of certificates of deposit, lowering outstanding amounts by ₹1.3 lakh crore. This change followed a boost in liquidity from the Reserve Bank of India's foreign currency deposit scheme. As a result, the need for short-term funding decreased, leading to lower call rates. Fresh CD issuance slightly increased, but rates fell notably, affecting overall funding costs.
Banks gain funding boost from FCNR deposits, but margins face near-term pressure
The trade-off highlights how the Reserve Bank of India's push to attract dollar inflows has eased funding constraints for banks, even as it creates a near-term drag on profitability.
Euro hits 17-month low as French debt fears, US inflation lift dollar
The euro reached a 17-month low against the dollar due to worries over France's budget deficit. Concerns about a potential euro-zone debt crisis have heightened market caution amid political uncertainty. Bonds from more indebted countries faced selling pressure, while German government debt remained favored. The dollar gained in strength partly due to persistent inflation signals in the US economy.
Rupee edges higher as traders await RBI policy decision on rates
The rupee ended marginally stronger at 96.2925 against the dollar, supported by lower Brent crude prices and improved sentiment. The currency traded in a narrow range as investors awaited the RBI’s monetary policy decision, with a 25-basis-point rate hike widely expected.
GST Council likely to align export definition with forex earnings, clarify on overseas branch services
The GST Council is expected to review a proposal to redefine the definition of export for services. This proposal aims to remove ambiguities related to services provided through overseas branches of Indian companies. The changes are anticipated to enhance clarity for exporters and reduce litigation regarding service supply locations. Additionally, this could benefit various sectors including IT, consulting, and engineering firms.
Rupee headed to 100? How much the psychological red line matters
India's rupee has slipped past ₹96 as high US Treasury yields, elevated oil prices and foreign portfolio outflows strengthen the dollar. The IMF says India can allow the exchange rate to act as a shock absorber, while the RBI weighs intervention against reserves, inflation and external risks. Experts debate whether gradual depreciation could improve competitiveness without triggering imported inflation.
RBI policy confronts a world with long tails
The RBI is likely to begin raising rates in October, with another hike possible in Q4 2026, as inflation risks broaden. Higher oil prices, weather shocks, weaker currency and geopolitical risks are fuelling imported pressures.
Global Market: Euro hits 17-month low as French fiscal worries boost dollar
The euro fell to a 17-month low as concerns over France’s fiscal outlook and bond-market selloff weighed on sentiment. The dollar strengthened despite weak US jobs data, supported by elevated Treasury yields and safe-haven demand. Diverging central-bank expectations and persistent bond volatility are likely to keep currency markets under pressure.
RBI likely intervenes to support rupee, traders say
The Reserve Bank of India intervened in the foreign exchange market to support the rupee. This action was taken as the currency faced pressure from a stronger dollar and fluctuating oil prices. Traders reported that state-run banks were observed offering dollars, likely on behalf of the RBI. The dollar index increased to its highest level in more than one year. The rupee slightly strengthened, closing at 96.
Why did market rise today? Sensex jumps 473 points, Nifty closes above 22,550: 6 key factors driving rebound
The Indian stock market recovered after eight weeks of losses, with Sensex gaining 473 points and Nifty 134 points. HDFC Bank appointed Anup Bagchi as its new CEO, boosting investor confidence. Oil prices fell below $102 per barrel due to increased supply and decreasing Fed rate hike concerns. The rupee strengthened amid easing oil prices, while bond yields also cooled down after recent highs.
Dollar holds firm as French fiscal woes keep euro on back foot
The dollar's ascent continues, climbing to a 17-month peak as the likelihood of a Federal Reserve rate increase diminishes. Meanwhile, European currencies face challenges, notably the euro, burdened by rising concerns over France’s debt and political instability. Recent employment statistics from the U.S. hint at a cooling labor market, leading traders to adjust their rate expectations for October.
Booming Leverage in Indian Stocks Fuels $33 Billion Debt Binge
Stock brokers are emerging as a major force in India’s short-term debt market, borrowing billions of dollars to finance investors’ growing appetite for leveraged equity bets.
DIAL raises 3,500 crore to refinance $522.6 m dollar bonds
Delhi International Airport Ltd has successfully raised ₹3,500 crore through 15-year rupee-denominated non-convertible debentures. This financing aims to refinance its upcoming $522.6 million dollar notes maturing in October 2026. Major investors included India Infrastructure Finance Company and various banks that subscribed substantial amounts.
Why Oil Is Still Stuck Near $100 a Barrel
Hundred-dollar oil is hard to leave behind.
RBI may hike repo rate by 25 bps as inflation and oil risks mount: Sunil Sanghai
The RBI could raise the repo rate by 25 basis points in October and signal further tightening as inflation, elevated crude prices and a narrowing rate gap with the US pressure the rupee. Strong reserves and a manageable current account provide crucial buffers.
GVC integration, supply chain resilience, FTAs key to boost exports, high-end manufacturing: Deloitte India
India needs deeper integration into global value chains, lower logistics costs and better use of free trade agreements to boost exports and move into higher-value manufacturing, according to Deloitte India. It also called for stronger supply-chain resilience, tariff rationalisation and greater support for MSMEs facing trade-finance, compliance and currency risks.
Frequently Asked Questions
What moves the USD/INR exchange rate?
The rupee's value against the dollar is driven by India's trade deficit (more imports than exports weaken the rupee), foreign institutional investor (FII) flows in and out of Indian markets, RBI intervention through dollar buying or selling, US Federal Reserve interest rate decisions, crude oil prices, and overall global risk sentiment. When FIIs sell Indian equities and repatriate dollars, the rupee depreciates; when they bring money in, it appreciates.
How do currency movements affect my stock investments?
A weakening rupee benefits IT exporters and pharma companies that earn in dollars but report in rupees — their revenues increase in rupee terms. Conversely, companies that import raw materials (like oil refiners, auto makers, and electronics firms) see higher input costs when the rupee falls. For investors in US-focused mutual funds or international ETFs, a depreciating rupee adds to returns, while an appreciating rupee can eat into gains.
Does the RBI control the exchange rate?
The RBI does not fix the exchange rate — it manages a floating rate regime. However, it actively intervenes in the forex market to smooth excessive volatility. When the rupee depreciates too fast, the RBI sells dollars from its reserves to support it. When it appreciates too quickly, the RBI buys dollars to prevent exporters from being hurt. This managed float means sharp one-day moves are less common than in fully free-floating currencies.