The rupee gained 9 paise to 94.80 against the U.S. dollar in early trade on Monday (October 19, 2026), supported by the ongoing impact of the Reserve Bank of India’s structural forex interventions.

Forex traders said the rupee has witnessed its sharpest rally in seven months. However, the surge in Brent crude oil to $110 per barrel poses the biggest threat to this recovery.

The rupee is inching closer to a key support level near 94. Constant pressure from high crude prices, rising U.S. Treasury yields, and steady foreign capital outflows has forced the RBI to step up its market intervention, they said.

At the interbank foreign exchange market, the rupee opened at 94.90 then touched 94.80 against the American currency, registering a gain of 9 paise from its previous close.

On Friday, the rupee settled 10 paise higher at 94.89 against the U.S. dollar.

“With USDINR holding below 95.00 for the last 3 sessions, the focus shifts to 94.80–94.70. A sustained break below 94.80 could open the way towards 94.00 over the coming weeks.

“However, elevated crude prices remain a key risk, and the rupee’s next move will depend on whether oil eases or sustains its surge,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.83, down marginally by 0.01%.

Brent crude, the global oil benchmark, was trading lower by 1.88% at $107.79 per barrel in futures trade, amid attacks on commercial vessels near the Strait of Hormuz, disruptions to oil flows and threats to Saudi energy infrastructure that have revived fears of a prolonged supply shock.

On the domestic equity market front, the Sensex dropped 470.50 points to 74,318 in early trade while the Nifty fell 147.10 points to 22,999.05.

Foreign Institutional Investors (FIIs) turned buyers and purchased equities worth ₹1,165.92 crore on a net basis on Friday, according to exchange data.

Meanwhile, according to RBI data released on Friday, India’s foreign exchange reserves dropped by $8.578 billion to $726.027 billion during the week ended October 9.

In the previous reporting week, the reserves had dropped by $12.952 billion to $734.606 billion.