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11 September 2026

Rupee depreciation against U.S. dollar

Rupee depreciation and its link to crude oil prices are recurring macroeconomic themes that provide essential context for questions on India's balance of payments, inflation, and energy security.

1 min read Day 5 of 5 2 questions 1 prelims

Notes

  • The Indian Rupee depreciated by 44 paise to close at 95.52 against the U.S. dollar.
  • Brent crude oil prices breached the USD 102 per barrel threshold, negatively impacting India's import cost trajectory.
  • Foreign portfolio outflows have resumed after a period of positive inflows in July and August.
  • The rupee is currently influenced by opposing market forces, specifically high crude oil prices and fluctuating foreign portfolio investment trends.

Part of a longer story

This is day 5 of 5 in Indian Rupee exchange rate fluctuations, which has been running since 3 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the impact of rising global crude oil prices on the Indian rupee and the broader macroeconomic stability of the country. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Discuss the factors contributing to the volatility of the Indian rupee in the foreign exchange market. How do foreign portfolio investment flows and import costs influence India's balance of payments? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following factors is primarily cited as a cause for the recent depreciation of the Indian rupee against the U.S. dollar?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-11/rupee-depreciation-against-u-s-dollar