Rupee hits six-month high of 93.91 against dollar on oil price decline | Economy & Policy News

The Indian rupee gained for the sixth consecutive day, rising to a six-month high of 93.91 against the dollar, driven by lower crude oil prices and higher foreign inflows into the domestic equity market over the past week, according to dealers. It was the best-performing Asian currency during the month.

 

The rupee, which opened at 94.49 against the dollar, compared with the previous close of 94.47, strengthened to 93.83 during the day before giving up some gains to settle at 93.91, its strongest level since April 22, 2026.

 

The currency, which was the second-best-performing Asian currency in October 2026 after the South Korean won, became the best-performing Asian currency on Friday. It was also the best-performing Asian currency in November, driven by week-long gains.

  

The rupee’s 0.60 per cent gain on Friday was its biggest single-day rise since October 12, 2026, when the currency gained 0.99 per cent.

 

“The Indian Rupee outpaced all of Asian peers, scoring its biggest single-day surge since October 12 to hit a six-month peak. Fueled by heavy foreign inflows and sliding crude prices, market sentiment went into overdrive amid a parabolic rally in domestic equities sparked by the buzz around the “Anti-AI” trade and ease of geopolitical uncertainties,” said Dilip Parmar, research analyst, HDFC Securities.

 

The Indian equity markets, driven by foreign inflows, were at a nine-month high on Friday.

 

“In the near term, spot USDINR is expected to head south with support pegged at 93.50 and resistance ticking up to 94.30,” he added.

 

The January 2027 Brent contract was also down at $96.84 per barrel on Friday, compared with $98.29 per barrel on Thursday. Prices have fallen from $117.64 per barrel on October 30, 2026, following reports of diplomatic engagement between the US and Iran, followed by the Democrats’ victory in the US midterm elections. Crude prices in the spot market also traded at $96.07 per barrel, lower than $98.69 per barrel on Thursday.

 

“Global crude benchmark Brent oil experienced massive two-way volatility on Friday, reversing sharply from early highs to drop to $97.311 per barrel after failing to sustain a breakout above the psychological $100 mark,” according to a report by Finrex Treasury Advisors.

 

India’s foreign exchange reserves fell for the eighth consecutive week to $717.06 billion in the week ended October 30, 2026, due to a decline in foreign currency assets. While total reserves fell by $2.7 billion, foreign currency assets declined by $2.09 billion. Gold reserves fell by $559 million.

 

After hitting an all-time high of $785.7 billion in the week ended September 4, 2026, total foreign exchange reserves fell by $68.7 billion over the next eight weeks as the central bank sold dollars in the foreign exchange market to curb volatility.

 

The yield on the 10-year benchmark government bond rose by 2 basis points (bps) to end at 7.19 per cent on Friday, recovering from Thursday’s close of 7.17 per cent, its lowest level since September 29, 2026, tracking gains in crude oil prices from the day’s lows and the results of government bond auctions. It is down 22 bps during the month and up 16 bps so far in FY27 and 60 bps in the calendar year.