Rupee slips to 95.97, RBI defends 96 as portfolio outflows hit $2.2 billion

The rupee fell 3 paise to 95.97 against the US dollar in early trade on Wednesday, 30 September, as state-run oil companies bought dollars and crude prices stayed firm at $103.43 a barrel. Dealers reported that state-run banks, acting for the Reserve Bank of India, sold dollars in spot and forward markets to keep the pair below 96. Foreign portfolio outflows reached about $2.2 billion in September, adding to the pressure, while the dollar index edged up to 101.40.

India’s forex reserves dropped $14.9 billion to $766 billion in the week ended 18 September, consistent with sizeable intervention, said Anindya Banerjee, head of currency research at Kotak Securities. On 28 September, the rupee had opened at 95.95, down 20 paise, amid Brent at $106.81. The Economic Times reports that economists expect the rupee to grind lower to 96, 97 a dollar by the end of FY27, disputing RBI Deputy Governor Poonam Gupta’s argument that the currency had overcorrected by 13% since March 2025 and could firm.

Update, 30 September 2026: The 30 September sources (The Hindu and Times of India) add that the rupee slipped a further 3 paise to 95.97, with state-run banks intervening to hold it below 96. They report foreign portfolio outflows of $2.2 billion this month and cite Kotak Securities’ Anindya Banerjee linking the $14.9 billion reserves drop to sizeable RBI intervention. The 28 September sources covered the rupee opening at 95.95 with Brent at $106.81.