Business & Finance

Rupee Gains 4 Paise to 94.39 Versus Dollar as Oil Prices Offset FCNR Inflows

By PTI

The Indian rupee moved within a tight range on Monday, September 7, 2026, strengthening by 4 paise to 94.39 against the U.S. dollar in early trade. The currency's advance, driven by strong FCNR-related dollar inflows, was partly offset by rising crude oil prices amid ongoing global tensions. Currency dealers noted that while the rupee continues to benefit from robust liquidity, renewed military strikes have pushed Brent crude toward $97 per barrel, raising concerns about potential energy supply disruptions in West Asia. On the interbank foreign exchange market, the rupee opened at 94.40 against the dollar before touching 94.39, marking a 4 paise gain from the previous session's close. On Friday, September 4, the rupee had closed 8 paise higher at 94.43 against the dollar. Amit Pabari, Managing Director of CR Forex Advisors, said the rupee began the week on stable footing, supported by substantial FCNR-related dollar inflows, though global conditions remain a concern. He identified the 94.00 to 94.20 range as a key support zone, warning that intensifying global pressures could push the USD-INR pair toward 95.00, then 95.50, and potentially 96.00. Separately, the dollar index, which measures the greenback against six major currencies, edged up 0.01% to 99.18, reflecting safe-haven demand amid renewed tensions between the United States and Iran. Brent crude, the international oil benchmark, rose 0.80% to trade at $97.05 per barrel in futures trading, driven by escalating U.S.-Iran tensions and fears of disruptions to oil shipments through the Strait of Hormuz. Pabari noted that fresh strikes between the two nations have pushed Brent crude closer to $97 per barrel, reviving worries over West Asian energy supplies. He added that for India, elevated oil prices typically bring a larger import bill, increased dollar demand, and renewed pressure on the rupee. In domestic equity markets, the Sensex fell 172.77 points to 76,342.66 in early trade, while the Nifty dropped 63.30 points to 23,832.60. Foreign institutional investors sold equities worth Rs 3,111.94 crore on a net basis on Friday, according to exchange data. Meanwhile, India's foreign exchange reserves rose by $11.475 billion to reach a record high of $740.803 billion during the week ended August 28, the Reserve Bank of India reported on Friday.