The rupee appreciated 19 paise to close at 95.80 (provisional) against the U.S. dollar on Friday (September 25, 2026), holding above the 96-mark, on improved global risk sentiment and possible intervention by the Reserve Bank.

Forex traders said gains in the rupee were capped by U.S. dollar demand from local importers, high crude prices and a stronger greenback driven by hawkish Federal Reserve signals.

At the interbank foreign exchange market, the rupee opened at 95.92 against the American currency. During the day, the local unit slipped to an intraday low of 95.94, but recovered lost ground to close at 95.80 (provisional), a 19 paise rise from its previous close.

On Thursday (September 24), the rupee weakened by 26 paise to settle at 95.99 against the U.S. dollar.

“We expect the rupee to trade with a slight positive bias on improved global risk sentiment amid optimism over the proposed U.S.-Iran phased deal to reopen the Strait of Hormuz and the end of the U.S. blockade.

“Falling crude oil prices and a weak dollar may support the rupee at lower levels. However, any fresh escalations may pressure the rupee at higher levels. Traders may take cues from durable goods orders data from the U.S.,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

According to Mr. Choudhary, the USD/INR spot price is expected to trade in a range of 95.60 to 96.10. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.18% lower at 101.10.

Brent crude futures, the global oil benchmark, were trading lower by 1.08 per cent at $105.45 per barrel.

The RBI is expected to step in as the rupee weakens toward 96, traders said, adding that India’s economic adjustment remains controlled, backed by foreign exchange reserves close to $781 billion and strategic policies that have cushioned the domestic economy from global energy price shocks.

On the domestic equity market front, Sensex rose 315.20 points to settle at 73,895.74, and Nifty settled 77.40 points higher at 23,140.50.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,027.36 crore on a net basis on Thursday (September 24), according to exchange data.