The Indian Rupee experienced severe depreciation pressure in interbank foreign exchange trading on Friday, shedding thirty-four paise against the US dollar to settle near historic lows as surging global crude benchmarks drove aggressive dollar demand from domestic oil refiners.
Forex currency traders noted that persistent capital outflows by foreign institutional investors from domestic equity markets, combined with a broadly strengthening US dollar index amid safe-haven global asset rotation, exacerbated the currency slide. State-run commercial banks were observed executing selective dollar sales on behalf of the Reserve Bank of India to curb disorderly currency volatility during late trading hours.
Monetary economists emphasized that while India substantial foreign exchange reserves of over six hundred and eighty billion dollars provide a robust cushion against external shocks, sustained geopolitical tensions and elevated import costs will test macroeconomic stability. Market participants anticipate that central bank interventions will focus on smoothing speculative spikes without defending an artificial exchange ceiling.
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Sources:
https://school.edusaint.in/news/school-assembly-news-headlines-11-september-2026