Rupee boxed in range; traders focus on oil, outflows and RBI's defence

Benchmarks Nifty22,749.75-3.46FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.32 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.45 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper Rupee boxed in range; traders focus on oil, outflows and RBI's defenceReutersLast Updated: Oct 27, 2026, 04:03:00 PM ISTSynopsis

The Indian rupee had a day of modest variability against the dollar on Tuesday, finishing the day almost unchanged. Major external challenges, including escalating oil prices and considerable equity outflows, are to blame. The Reserve Bank of India has actively sought to stabilize the rupee's position. In light of current economic dynamics, investors are taking this opportunity to revisit their portfolio strategies, while mounting U.S.

The Indian rupee seesawed in a narrow range against the dollar on Tuesday before ending little changed, while underlying sentiment remained weak.

The rupee ended at 95.1150 per dollar, up less than 0.1% from 95.1850 on Monday.

Persistent external pressures from higher oil prices and equity outflows have left the currency reliant on Reserve Bank of India intervention for support, traders said.

India should not "fixate on a number" for its currency level or run down foreign exchange reserves to defend the rupee, former Reserve Bank of India governor Raghuram Rajan, told Reuters on Tuesday. The central bank has spent around $80 billion to bolster the local currency since June.

Benchmark Brent crude oil was hovering close to its highest levels in the last six months, around $117 per barrel in Asian hours, pushing importers to increase their hedging bets.

Live Events

India relies on imports for around 90% of its oil requirements. High prices add to concerns over Asia's third largest economy's outlook, with implications for foreign portfolio outflows and the nation's current account balance.

Foreign investors have net sold around $8.5 billion of Indian equities in the last two months, a major drag on the rupee.

Equity market volatility, currency concerns and the return on offer from dollar-denominated fixed income investments are encouraging investors to reassess equity-concentrated portfolios, said Sachin Sawrikar, Managing Partner at GIFT City-based Artha Bharat Investment Managers.

Meanwhile, traders said elevated US Treasury yields have also been putting pressure on the local currency, as investors are not able to find a decent carry for their investments risks.

Viram Shah, CEO at fintech company Vested, said with the 10-year US yield around 5%, fixed-income instruments have become more relevant for investors.

Traders said the central bank's tolerance for a measured weakening in the rupee would be closely watched in the near-term.

The RBI's intervention, along with measures to curb dollar buying helped the local currency recover earlier this month after it neared a record low hit in May.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onIndian rupeeReserve Bank of IndiaRaghuram RajanBrent crude oil pricesforeign portfolio outflowsUS Treasury yieldscurrency intervention

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onIndian rupeeReserve Bank of IndiaRaghuram RajanBrent crude oil pricesforeign portfolio outflowsUS Treasury yieldscurrency intervention

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition

• KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3

• Will oil turn into a lingering problem? Is the world economy, India, or the market prepared?

• KYB and KYC: Business behind the wealth creator called ‘Divi’s Lab’ – Part 2, concluding

• KYB and KYC: Business behind the wealth creator called “Divi’s Lab” – Part 1

• The global business of promising more

• One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?

• 1
• 2
• 3

View all StoriesContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in