The Indian rupee ended September at approximately ₹95.83 per US dollar. It lost about 0.7% during the month and 1.2% over the July–September quarter, placing it among Asia’s weaker-performing currencies.
Higher crude-oil prices, rising global bond yields and foreign investment outflows placed pressure on the currency. Because India imports most of its crude oil, an increase in international energy prices generally raises the country’s demand for US dollars.
Regular dollar sales by the Reserve Bank of India helped prevent a sharper decline. The intervention also kept the currency from retesting its record low of ₹96.96 per dollar, reached during the previous quarter.
RBI-supported measures introduced in June had attracted approximately US$143 billion in foreign-exchange inflows by September 18. Nearly US$133 billion reportedly came through foreign-currency deposits.
For NRIs, a weaker rupee can increase the amount received by families when foreign earnings are converted into Indian currency. However, depreciation also makes overseas tuition, international travel and dollar-denominated payments more expensive for Indian households.
