The Indian rupee had a strong October 2026. It gained nearly 1% against the US dollar during the month, making it Asia’s second-best performing currency after the South Korean won — a sharp turnaround after touching record lows earlier in the year.

Where the rupee stands now

  • Closed at Rs 94.46 against the dollar on Thursday, 5 November — flat for the day, after touching an intraday low of 94.32, its strongest level in two months
  • The rupee has depreciated 4.87% so far in 2026, but it has gained 0.36% since the start of the financial year
  • It has now strengthened for six trading days in a row

What helped the recovery

  • RBI intervention: the Reserve Bank sold a net $18.20 billion in the spot and forward markets between 1 and 16 October — the highest monthly selling so far in 2026
  • New RBI measures on 10 October: the central bank opened a dedicated dollar-supply window for three public sector oil companies, moving their dollar purchases out of the spot market, and moved to curb speculative positions
  • Cheaper oil: crude prices fell after the US midterm elections, and the dollar weakened globally
  • India’s forex reserves stand at about $720 billion, giving the RBI room to keep the currency orderly

What happens next

Bank of Baroda expects the rupee to trade in a range of 94.75–95.75 per dollar in the near term, with crude oil prices deciding the direction. Higher oil prices remain the biggest risk — India imports most of its oil, so expensive crude means more dollar demand and a weaker rupee.

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