Indian Rupee Rises 23 Paise Against US Dollar in Early Deals

October 9, 2026

New Delhi: The Indian rupee witnessed an improvement in early trade on Friday. Weakness in the US dollar and possible intervention by the Reserve Bank of India (RBI) led to the rupee strengthening by 23 paise to 96.65 against the US dollar.

The rupee opened at 96.74 per dollar in the interbank foreign exchange market. It subsequently strengthened further to reach 96.65 per dollar. The rupee had closed at 96.88 per dollar, down 13 paise in the previous trading session.

The dollar index fell to around 102 on Friday, while Brent crude oil prices hovered around $103 per barrel. This trend in the market came amid US President Donald Trump’s statement that he would postpone an attack on Iran until after the midterm elections.

Impact of dollar weakness and softening crude oil prices

According to market experts, the rupee received support from a decline in the US dollar index. A decline in US Treasury bond yields and a positive investor response to the 30-year bond auction also pressured the dollar, indicating investor demand for long-term US government bonds.

Experts said the softening of crude oil prices has eased concerns about inflation. President Trump, citing positive talks between the US and Iran, had stated that there would be no attack on Iran before the midterm elections.

Market eyes US Fed interest rates

Investors are also closely monitoring the US Federal Reserve’s upcoming monetary policy. According to experts, the market sees an 82 percent chance that the Fed will not change interest rates this month. The probability of a rate hike in December is estimated at around 81 percent.

Federal Reserve Governor Christopher Waller said that further interest rate increases may be necessary to bring inflation to the 2 percent target. However, he also said that policymakers will maintain flexibility regarding the pace of interest rate tightening.

Sensex and Nifty also opened with gains

Indian stock markets also opened on a positive note on Friday. The Sensex rose 183.43 points, or 0.26 percent, in early trade amid buying in IT stocks. Meanwhile, the Nifty 50 opened at 22,314.95, up 83.15 points, or 0.37 percent.

Meanwhile, foreign institutional investors (FIIs) sold shares worth ₹12,943 crore from the Indian stock market on Thursday. In contrast, domestic institutional investors (DIIs) bought shares worth ₹10,703 crore.

So far in October, foreign institutional investors have sold shares worth ₹36,210 crore through exchanges. Continued selling by foreign investors remains a key factor putting pressure on the domestic stock market.