Rupee Opens Higher at 96.22 Against Dollar as Oil Eases
- 5th October 2026
- 10:00 AM
- 3 min read
Summary
The Indian rupee opened 10 paise higher at 96.22 against the US dollar on 5 October 2026, compared with its previous close of 96.32. Softer oil prices and fading bets on a US Federal Reserve rate hike in October supported the currency. A firm dollar, foreign investor selling and dollar demand from oil companies continued to weigh on it.Mumbai | 5 October 2026
The rupee opened at 96.22 per dollar on Monday, 5 October 2026, up 10 paise from its close of 96.32 on Thursday, 1 October 2026.
Why Did the Rupee Open Higher Against the Dollar?
Oil prices eased in early trade, which reduced pressure on the rupee. Soft US jobs data also led traders to cut their bets on a rate hike by the US Federal Reserve (Fed) this month.
What Is Still Putting Pressure on the Rupee?
The dollar started the week on a firm footing, staying near a 17-month high. The dollar index, which tracks the dollar against a group of major currencies, rose to 102.12. The euro fell to 1.1212 against the dollar as fiscal worries in France weighed on it.
Two local factors also added pressure on the rupee:
- Oil companies are buying dollars.
- Foreign portfolio investors (FPIs) are selling Indian assets, even though equity valuations have come down and 10-year yields have risen.
What Is the Market Expecting From the RBI?
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) began its three-day meeting in Mumbai on 5 October 2026. The six-member panel, chaired by RBI Governor Sanjay Malhotra, will announce its decision on 7 October. Expectations of a 25 basis point (bps) rate hike are growing. A basis point is one-hundredth of a percentage point.
| Detail | Figure |
| Current repo rate | 5.25%, unchanged for four policy meetings |
| Rate cuts in 2025 | 125 bps in total |
| Retail inflation, August | 4.82%, an eight-month high |
| RBI inflation target | 4% |
| Brent crude | Above $100 per barrel |
Retail inflation has stayed above the RBI’s 4% target for three straight months. Traders are also watching for any RBI action to support the rupee.
How Did Other Asian Currencies Move Against the Dollar?
Most Asian currencies strengthened against the US dollar, led by the Indonesian rupiah, while three currencies weakened.
| Currency | Move against the US dollar |
| Indonesian rupiah | Up 0.47% |
| Taiwan dollar | Higher |
| Philippine peso | Higher |
| Japanese yen | Up 0.095% |
| Chinese renminbi | Edged higher |
| Thai baht | Edged higher |
| Singapore dollar | Weaker |
| South Korean won | Weaker |
| Malaysian ringgit | Weaker |
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