Rupee sinks to two-month low amid FPI selling and rising US yields

Economic Times - Oct 1, 2026

On Thursday, the Indian rupee declined to a two-month low against the US dollar due to foreign portfolio outflows. Overseas investors sold off investments amid rising US bond yields and dollar demand. The rupee surpassed the 96-level twice in three days, indicating intense market pressure. Custodian banks continued purchasing dollars, which also pointed to ongoing foreign outflows.

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