September 3, 2026 9:43 AM
Rupee Jumps to Two-Month High After Huge Forex Inflows, Oil Prices Remain a Concern
The Indian rupee strengthened sharply against the US dollar on September 3, reaching a two-month high of around ₹94.30 per dollar during early trading. The rise was supported by substantial foreign-currency inflows generated through special measures involving non-resident deposits and other overseas funding.
The inflows have strengthened India’s foreign-exchange position and provided the Reserve Bank of India with greater room to manage currency volatility.
However, higher global crude oil prices remain a concern. A sustained increase in oil costs could raise India’s import bill and put pressure on inflation and the trade deficit.
